A Short-Term Investment Acquired at a Cost of $50,000 in 2016

question 179

Multiple Choice

A short-term investment acquired at a cost of $50,000 in 2016 is sold in 2017 for $45,800.After the proper adjusting entry was prepared in 2016,the short-term investment had a carrying value of $43,200.In 2017,the investor should report a(n) :

• A) Loss on Sale of Short-Term Investment of $4,200
• B) Loss on Sale of Short-Term Investment of $2,600
• C) Loss on Sale of Short-Term Investment of $6,800
• D) Gain on Sale of Short-Term Investment of $2,600

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Definitions:

SSRIs

Selective Serotonin Reuptake Inhibitors, a class of drugs commonly prescribed for depression and anxiety disorders, which work by increasing levels of serotonin in the brain.

Benzodiazepines

A class of psychoactive drugs known for their sedative and anxiolytic effects, commonly used to treat anxiety, seizures, and insomnia.

R-sleep

R-sleep, also known as REM (Rapid Eye Movement) sleep, is a sleep phase characterized by rapid movement of the eyes, increased brain activity, vivid dreams, and temporary muscle paralysis.

Infant

An infant refers to a young child in the earliest period of life, particularly from birth to one year of age, characterized by rapid physical growth and cognitive development.