A Stock Investment (Less Than 20% Ownership) Is Purchased for $73,500.At

question 116

Multiple Choice

A stock investment (less than 20% ownership) is purchased for $73,500.At year end, when the market value of the stock is $65,000, the adjusting entry includes a

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

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, generally measured by GDP.

Market Sector

A segment of the economy into which large groups of businesses and companies can be categorized based on their business activities.

Deadweight Losses

The loss of economic efficiency that can occur when equilibrium for a good or service is not achieved.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured as a percentage increase in real GDP.