1/ Six months ago, a company purchased an investment in stock for $70,000. The investment is classified as available-for-sale securities. This is the companys first and only investment in available-for-sale securities. The current fair value of the stock is $73,750. The company should record a:

Multiple Choice

Debit to Unrealized Loss-Equity for $3,750.

No entry is required.

Credit to Unrealized Gain-Equity for $3,750.

Debit to Investment Revenue for $3,750.

Credit to Investment Revenue for $3,750.

2/ On June 18, Wyman Company (a U.S. Company) sold merchandise to the Nielsen Company of Denmark for 83,000 (Euros), with a payment due in 60 days. If the exchange rate was $1.58 per euro on the date of sale and $1.37 per euro on the date of payment, Wyman Company should recognize a foreign exchange gain or loss in the amount of:

Multiple Choice

$83,000 gain.

$83,000 loss.

$113,710 loss.

$17,430 gain.

$17,430 loss.

3/ Madison Corporation purchased 40% of Jay Corporation for $180,000 on January 1. On June 20 of the same year, Jay Corporation declared total cash dividends of $45,000. At year-end, Jay Corporation reported net income of $225,000. The balance in Madison Corporation's Long-Term Investment-Jay Corporation account as of December 31 should be:

Multiple Choice

$180,000.

$333,000.

$252,000.

$108,000.

$288,000.