An Analysis of Kenny Corporation's Investment in Equity Securities Account $\begin{array} { | l | c | } \hline \text { Debit entries } & \$ 445,000 \\\hline \text { Credit entries } & \$ 270,000 \\\hline\end{array}$

question 14

Multiple Choice

An analysis of Kenny Corporation's Investment in Equity Securities account during 2014 disclosed the following:
$\begin{array} { | l | c | } \hline \text { Debit entries } & \$ 445,000 \\\hline \text { Credit entries } & \$ 270,000 \\\hline\end{array}$
Kenny s 2014 income statement included a $90,000 loss on sale of equity securities and $65,000 dividend income from equity securities. All payments and proceeds relating to equity securities transactions were in cash.

-The cash proceeds received by Kenny Corporation in 2014 for the sale of equity securities was:

• A) $230,000.
• B) $280,000.
• C) $195,000.
• D) $180,000.

---

Definitions:

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specific amount of an underlying asset at a set price within a specified time.

Stock Split

An action by a company to divide its existing stock into multiple shares to boost the liquidity of the shares, although the overall value of the shares remains the same.

Dow Jones

Dow Jones refers to the Dow Jones Industrial Average, a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

Adjustment

A modification made to accounts, financial statements, or records to ensure their accuracy and compliance with financial reporting standards.