A Company Had Investments in Long-Term Available-For-Sale Securities B) C)

question 146

Multiple Choice

A company had investments in long-term available-for-sale securities.At the end of the current year,the company's portfolio had a $731,000 cost and $730,000 market value.
What is the current year's adjustment to market value given the following account balances at the end of the prior year?

• A) \[\begin{array} { | c | l | l | } \hline \text { Market Adjustment - Available-for-Sale } \ldots \ldots \ldots \ldots \ldots & 1,000 & \\ \hline \text { Ururealized Gain Equity } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & & 1,000 \\ \hline \end{array}\]
• B) \[\begin{array} { | c | l | l | } \hline \text { Market Adjustment - Available-for-Sale } \ldots \ldots \ldots \ldots \ldots &6 , 0 0 0 & \\ \hline \text { Ururealized Gain Equity } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & & 6 , 000 \\ \hline \end{array}\]
• C) \[\begin{array} { | l | l | l |} \hline \text { Ururealized Gain Equity } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 1,000 \\ \hline\quad \text { Market Adjustment - Available-for-Sale } \ldots \ldots \ldots \ldots \ldots && 1,000 \\ \hline \end{array}\]
• D) \[\begin{array} { | l | l | l |} \hline \text {Ururealized Gain (Loss)}\\ \text{Equity } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 6,000 \\ \hline\quad \text { Market Adjustment - Available-for-Sale } \ldots \ldots \ldots \ldots \ldots && 6,000 \\ \hline \end{array}\]
• E) \[\begin{array} { | c | l | l | } \hline \text { Uryealized Gain (Loss) Equity } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 4,000 & \\ \hline \text { Market Adjustment - Available-for-Sale } \ldots \ldots \ldots \ldots & & 4,000 \\ \hline \end{array}\]