Ewok Enterprises Recently Elected the Fair Value Option to Account

question 113

Multiple Choice

Ewok Enterprises recently elected the fair value option to account for its investment in Yoda Inc.Ewok purchased the shares for $210,000 and the shares are currently trading for $195,000 at year-end.What is the carrying value of this investment on the balance sheet of Ewok?

• A)$210,000
• B)$15,000
• C)$202,500
• D)$195,000

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Definitions:

Channels

In marketing, channels refer to the paths or routes through which goods and services flow from the producer to the consumer.

Wholesalers

Businesses that buy goods in large quantities directly from manufacturers to resell them in smaller quantities to retailers or other businesses.

Exposure

In marketing, it refers to the degree to which a target audience sees or interacts with a brand's message or campaign across various mediums.

Intensive Distribution

A strategy designed to get products into as many outlets as possible.