Mirvish Limited Invests in Short Term Investments If Mirvish Accounts for These at Fair Value Through OCI

question 132

Multiple Choice

Mirvish Limited invests in short term investments. The following information is available about its investments at December 31, 2020: $$\begin{array} { | l | r | r | } \hline & \text { Cost } & \text { Market } \\\hline \text { Investment 1 } & \$ 40,000 & \$ 36,000 \\\hline \text { Investment2 } & 30,000 & 26,000 \\\hline\end{array}$$ If Mirvish accounts for these at fair value through OCI investments, what entry is necessary for fiscal 2020?

• A)A loss of $8,000 to net income.
• B)A gain of $8,000 to net income.
• C)A loss of $8,000 to OCI.
• D)A gain of $8,000 to OCI.

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Definitions:

Efficient

Being effective without wasting time, effort, or resources; optimizing performance.

Great Marketing

Involves innovative strategies and exceptional execution to effectively promote products or services, often leading to increased brand awareness and sales.

Creating Value

The process of enhancing the worth of a product or service to customers, making it more desirable and potentially increasing its marketability.

Marketplace Demands

The needs or desires of consumers that drive the supply dynamics in a market.