The Following Information Related to the Marketable Security Investments of Solo

question 66

Multiple Choice

The following information related to the marketable security investments of Solo Company. Securities held on December 31, 2009, as described in the table below. AAA and BBB are classified as trading securities and CCC is classified as an available-for-sale security. Early in 2010, Solo sold all of its investment in AAA securities for $36 per share. The journal entry to record the 100 shares of AAA stock sold in 2010 will include:

• A) A debit to Trading Securities for $3,400.
• B) A credit to Unrealized Loss on Trading Securities for $200.
• C) A credit to Realized Loss on Sale of Trading Securities for $200.
• D) A credit to Realized Gain on Sale of Trading Securities for $200.

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Definitions:

Abandonment

The act of giving up or withdrawing support for something or someone, often used in contexts like website shopping cart abandonment.

Deadly Sins

Typically refers to the seven vices in Christian moral teachings that are considered fatal to spiritual progress, but it can also metaphorically describe major mistakes or pitfalls in various contexts.

Moral Guidelines

Principles or rules of conduct based on ethical considerations and societal norms that inform decisions and actions.

Ethics

A set of moral guidelines and principles that influence our behaviors and interactions.