Wright Company Has Available-For-Sale Debt Securities That It Had Originally

question 100

Multiple Choice

Wright Company has available-for-sale debt securities that it had originally acquired at part for $110,000. On December 31, 2017, the securities had a market value of $108,000. The market value rose to $123,000 by December
31, 2018. What accounting action is required on December 31, 2018?

• A) Allowance for Change in Fair Value of Investments should be credited for $15,000.
• B) Unrealized Holding Gain/Loss-Available-for-Sale Securities should be debited for $13,000.
• C) Allowance for Change in Fair Value of Investments should be debited for $15,000.
• D) Unrealized Holding Gain/Loss-Available-for-Sale Securities should be credited for $13,000.

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Definitions:

Dermis

The middle layer of the skin, which contains connective tissue, nerve endings, hair follicles, sweat glands, and oil glands.

Subcutaneous Layer

The layer of fat and connective tissue beneath the skin that serves as insulation and an energy reserve.

Hemorrhage

The loss of blood from a broken blood vessel, either inside or outside the body.