At December 31, 2025, the fair value of non-trading securities is 41,300 and the cost is 39,800.
Question:
At December 31, 2025, the fair value of non-trading securities is €41,300 and the cost is €39,800. At January 1, 2025, there was a credit balance of €900 in the Fair Value Adjustment—
Non-Trading account. The required adjusting entry would be:
a. Debit Fair Value Adjustment—Non-Trading for €1,500 and credit Unrealized Gain or Loss—
Equity for €1,500.
b. Debit Fair Value Adjustment—Non-Trading for €600 and credit Unrealized Gain or Loss—
Equity for €600.
c. Debit Fair Value Adjustment—Non-Trading for €2,400 and credit Unrealized Gain or Loss—
Equity for €2,400.
d. Debit Unrealized Gain or Loss—Equity for €2,400 and credit Fair Value Adjustment—Non-
Trading for €2,400.
Step by Step Answer:
Financial Accounting With International Financial Reporting Standards
ISBN: 9781119787051
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso