Worldwide Enterprises Purchased a Bond on June 30 of the Current

question 132

Multiple Choice

Worldwide Enterprises purchased a bond on June 30 of the current year for $100,000 and classified the investment as trading debt.The market value of the trading debt investment at year-end is $102,500.The adjustment is ________.

• A) reported as a separate component of stockholders' equity
• B) reported as a $2,500 unrealized holding gain in the Other Income and (Expenses) section of the income statement
• C) not reported on the income statement because the market value is greater than the cost
• D) subtracted from the Trading Debt Investment account

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Definitions:

Rods

Photoreceptor cells in the retina of the eye that are highly sensitive to light and enable vision in low-light conditions.

Cones

Photoreceptor cells in the retina of the eye that function best in relatively bright light and provide the ability to perceive color and fine detail.

Wavelengths

The distance between successive crests of a wave, typically used in the context of electromagnetic waves, sound waves, or other wave phenomena.

Visual Receptors

Cells located in the retina of the eye that are sensitive to light and enable vision.