Vert Company purchased Dextrin common stock for $150,000. At December 31, Year 2, the Fair value adjustment
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Question:
Vert Company purchased Dextrin common stock for $150,000. At December 31, Year 2, the Fair value adjustment account had a debit balance of $10,000. On December 31, Year 3, the fair value of that investment was $154,000. Which of the following will be included in the related journal entry dated December 31, Year 3?
a). Debit to Fair value adjustment for $4,000.
b). Credit to Fair value adjustment for $6,000.
c). Debit to Fair value adjustment for $14,000.
d). Credit to Fair value adjustment for $16,000.
Related Book For
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess
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