Use the Following Information for Questions

question 52

Multiple Choice

Use the following information for questions.
On January 1, 2018, Burkett Corporation purchased, as a long-term investment, a $25,000, 5% bond, for $21,595. At this time, the market rate of interest was approximately 7%. The bond pays interest on January 1 and July 1. On December 31, 2018, the fair value of the bonds was $23,950.
-What is the entry (if any) to record the fair value adjustment on December 31, 2018? Assume the adjusting entry for the interest accrual has already been recorded.

• A) No entry required.

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Definitions:

Distribution Channels

The pathways through which a product or service is delivered from the producer to the end consumer.

Market Segmentation

The practice of categorizing a market into distinct subsets of customers with common needs or characteristics.

Brand Positioning

The process of placing a brand in the marketplace and in the minds of consumers by differentiating it from competitors, focusing on unique attributes or benefits.

Logistics Supplier

A company that provides services related to the management, transportation, and storage of goods.