An Investment in Common Stock Acquired During the Year at a Cost

question 97

Multiple Choice

An investment in common stock acquired during the year at a cost of $40,000 has a year-end market value of $42,250. The year-end adjusting entry requires a:

• A) debit to Long-Term Investments for $2,250.
• B) debit to Allowance to Adjust Investments to Market for $2,250.
• C) credit to Allowance to Adjust Investments to Market for $2,250.
• D) debit to Unrealized Gain on Investment for $2,250.

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