Question: On its December 3 1 , 2 0 1 8 , statement of financial position, ABC Co . reported its investment in trading securities with

On its December 31,2018, statement of financial position, ABC Co. reported its investment in trading securities with a cost of $600,000 and fair value of $650,000. At December 31,2019, the fair value of the securities was $625,000. The journal entry for fair value adjustment that ABC should report on Dec 31s 2019 includes:a. Credit the Fair Value adjustment by $25,000b. Credit the unrealized holding gain or loss by $25,000.c. Debit the unrealized holding gain or loss by $50,000d. Debit the Fair Value adjustment by $25,000

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