A Debt Investment Classified as Trading Securities Is Purchased for $73,500

question 70

Multiple Choice

A debt investment classified as trading securities is purchased for $73,500. At year end, when the fair value of the debt is $65,000, the adjusting entry includes a

• A) credit to Debt Investments.
• B) debit to Loss on Sale of Debt Investment.
• C) credit to Fair Value-Adjustment-Trading.
• D) credit to Unrealized Loss-Income.

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Definitions:

Peyronie's Disease

A condition in which scar tissue develops inside the penis, causing it to bend abnormally during erection.

Corpora Cavernosa

Erectile tissue structures in the penis that fill with blood during sexual arousal, causing an erection.

Calcium Deposits

Mineral build-ups in body tissues, which can cause various health issues depending on their location.

Dyspareunia

A medical term for painful sexual intercourse, which can be caused by a variety of physical or psychological factors.