A Long-Term Investment in Common Shares Acquired During 2014 at a Cost

question 66

Multiple Choice

A long-term investment in common shares acquired during 2014 at a cost of $45,000 has a market value on December 31,2014,of $45,725.The year-end adjusting entry requires a:

• A) credit to Allowance to Adjust Investment to Market for $725
• B) debit to Unrealized Gain on Investment for $725
• C) debit to Long-Term Investment for $725
• D) no entry required

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Definitions:

Strict Liability

Refers to legal responsibility for damages or injury, even if the person found strictly liable was not at fault or negligent.

Building Construction

The process involving materials, design, and planning to create a structure for a specific use or purpose.

Selling

The process of exchanging goods or services for money or other compensation.

Transporting Passengers

The act of moving individuals from one location to another, typically as a service offered by vehicles such as buses, trains, airplanes, and taxis.