Use the Following Information to Answer Questions

question 50

Multiple Choice

Use the following information to answer questions
Heart Company has a total of 750,000 shares issued.Diamonds Inc.purchases 150,000 of Heart shares for $10 \ share on January 1, 2011.On December 31, 2011, Heart has a net income of $125,000 and Heart shares are trading for $9.50 \ share.
-If this is an AFS investment, Diamond would:

• A)record a decrease to the investment in shares account
• B)record an unrealized loss to be recognized on the OCI
• C)record an unrealized loss in net earnings
• D)not be required to make any entries on December 31

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Definitions:

Rewarding

Providing benefits, recognition, or compensation as an acknowledgment of effort, achievement, or desirable behavior.

Maintenance Activities

Support the emotional life of the team as an ongoing social system.

Intergroup Competition

The rivalry between different groups or teams, used as a strategy to boost motivation or performance by fostering a sense of competition.

Internal Loyalty

Devotion and commitment an employee feels towards their organization or team, often resulting in increased motivation, productivity, and a willingness to go above and beyond.