Carpark Services Began Operations in 20X1 and Maintains Long-Term Investments

question 119

Multiple Choice

Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale securities. The year-end cost and fair values for its portfolio of these investments follow. The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X1 is:
$\begin{array}{|l|l|l|}\hline \text { Available-for-Sale Securities }&\text { Cost }&\text { Fair value}\\\hline \text { December } 31,20 \mathrm{X} 1 & \$ 250,000 & \$ 241,000 \\\hline \text { December } 31,20 \mathrm{X} 2 & \$ 340,000 & \$ 350,000 \\\hline \text { December } 31,20 \mathrm{X} 3 & \$ 410,000 & \$ 415,000\\\hline\end{array}$

• A)Debit Fair Value Adjustment - Available-for-Sale (LT)$9,000; Credit Unrealized Loss - Equity $9,000.
• B)Debit Unrealized Gain- Equity $9,000; Credit Fair Value Adjustment - Available-for-Sale (LT)$9,000.
• C)Debit Fair Value Adjustment - Available-for-Sale (LT)$9,000; Credit Unrealized Gain - Equity $9,000.
• D)Debit Unrealized Loss - Equity $9,000; Credit Fair Value Adjustment - Available-for-Sale (LT)$9,000.
• E)Debit Unrealized Loss - Income $9,000; Credit Fair Value Adjustment - Available-for-Sale (ST)$9,000.

---

Definitions:

Niche Websites

Online platforms focusing on specific interests, topics, or audiences, catering to particular segments rather than a general audience.

Big Job Boards

Online platforms that list a large volume of employment opportunities from various employers, serving as a resource for job seekers.

Unethical Résumé

A curriculum vitae containing false or embellished information with the intention to deceive potential employers.

Professional References

Individuals who can vouch for your abilities, accomplishments, and work ethic, typically required during job applications.