Cost and Fair Value Data for the Trading Securities of McMahon

question 13

Short Answer

Cost and fair value data for the trading securities of McMahon Company at December 31 2017 are $110000 and $85000 respectively. Which of the following correctly presents the adjusting journal entry to record the securities at fair value? a.
$\begin{array}{llr} \text {Dec. 31 Unrealized Loss - Income. } &25,000\\ \text { Trading Securities. } &&25,000\\\end{array}$

b.
$\begin{array}{llr} \text { Dec. 31 Unrealized Loss - Income. } &25,000\\ \text { Trading Securities. } &&25,000\\\end{array}$

c.
$\begin{array}{llr} \text { Dec. 31 Unrealized Loss - Income. } &25,000\\ \text { Fair Value Adjustment-Trading} &&25,000\\\end{array}$

d.
$\begin{array}{llr} \text {Dec. 31 Unrealized Loss - Income. } &25,000\\ \text { Unrealized Loss-Income. } &&25,000\\\end{array}$

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