At December 31, 2020, Platinum Corp If the Investments Are Being Accounted for Under the Fair

question 35

Multiple Choice

At December 31, 2020, Platinum Corp. has the following equity securities (no significant influence) that were purchased earlier in 2020, its first year of operation: $\begin{array}{c}\begin{array}{lll}\\\text {Security A}\\\quad\quad\quad\quad\text {B}\\\text {Totals}\\\end{array}\begin{array}{l}\underline{\text { Cost }}\\\$ 50,000 \\\underline{70,000}\\\underline{{\$ 120,000}} \end{array}\begin{array}{c}\underline{\text { Market } }\\\$ 51,875 \\\underline{77,500}\\\underline{\$ 129,375} \end{array}\end{array}$
If the investments are being accounted for under the fair value through net income (FV-NI) model, the total book value of the investment accounts should

• A) be decreased by $ 9,375.
• B) be increased by $ 9,375.
• C) be decreased by $ 20,000.
• D) remain unchanged.