PM Distributors began Year 2 with Equity Investments of $8,400 ?(which consisted of a single? investment) as
Question:
PM Distributors began Year 2 with Equity Investments of $8,400 ?(which consisted of a single? investment) as well as a debit balance of
$900 in the Fair Value Adjustment ? Equity Investments account. PM does not have significant influence over the? investee, and the investment has a readily determinable fair value. This trading security was sold for $9,300 during Year 2. How much was the gain or loss for the sale of this investments and how is it? recorded?
A.
Realized Gain of
$ 900$900?,
reported as part of Net Income.
B.
Unrealized Gain of
$ 900$900?,
reported as part of Other Comprehensive Income.
C.
No gain or loss? reported, as the investment was sold for the adjusted fair value.
D.
Realized Loss of
$ 900$900?,
reported as part of Net Income.
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella