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12. Refer to the information above. Assuming Kebo does not sell this investment, the fair value accounting adjustment necessary at December 31, 2015, includes: A.

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12. Refer to the information above. Assuming Kebo does not sell this investment, the fair value accounting adjustment necessary at December 31, 2015, includes: A. A $10,000 debit to Unrealized Holding Gain on Investments B. A $50,000 credit to Unrealized Holding Gain on Investments. C. A $10,000 debit to Investments in Marketable Securities. D. A $1450,000 debit to Investments in Marketable Securities. 13. Refer to the information above. Assuming Kebo does not sell this investment, the financial statements prepared at December 31, 2015 will report A. Investments in Marketable Securities of $1,400,000, reduced by a $60,000 Unrealized Holding Gain on Investments, in the asset section of the balance sheet. B. The asset Investments in Marketable Securities of $1,400,000 in the balance sheet, and a $50,000 Unrealized Holding Loss on Investments in the income statement. C. The asset Investments in Marketable Securities of $1,450,000, and a $10,000 Unrealized Holding Loss deducted from total stockholders' equity D. Investment in Marketable Securitics of $1,450,000 in the asset section of the balance sbeet, with a $50,000 Unrealized Holding Gain on Investments incladed in the stockholders' equity section. 14. Early in the current year, Tokay Co. purchased the Silverton Mine at a cost of $20,000. The mine was estimated to contain 200 tons of ore and to have a residual value of $5,000 after mining operations are completed. During the year, 105 tons of ore were removed from the mine. At year-end, the book value of the mine (cost minus accumulated depletion) is A. $15,000 B. $7,875 C. $12,125 D. Another amount. 15. The inclusion of the intangible asset goodwill in the financial statements of a company indicates A. That the company has a favorable reputation with its customers B. A monopoly position in the industry or superior management. C. That the company has purchased a going business at a price in excess of the fair market value of the net identifiable assets. D. An unbroken record of annual carnings and dividends. 16. Goodwill A. Is not amortized, but is tested annually for impairment B. Is amortized using the straight-line method C. Is amortized using the units-of production method. D. May be amortized using either the straight-line or units-of-production method. 17. Cambria owns equipment that cost $93,500 with accumulated depreciation of $64,000. Cambria asks $35,000 for the equipment but sells the equipment for $33,000. Compute the amount of gain or loss on the sale. The journal entry to record the disposal of the asset would involve all of the following except: A. Debit Accumulated Depreciation $64,000. B. Credit Equipment $93,500. C. Debit Loss on Disposal of Equipment $3,500. D. Credit Gain on Disposal of Equipment $3,500

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