A company has a debt security classified as trading. It cost the company $400,000 at the beginning of the year. At the end of the year, it is worth $450,000.

Assuming the company only performs adjustments at year end and the initial purchase of the investment was properly recorded, what entry is required for this trading security?

Question 9 options:

Debit Credit Unrealized holding gain - Debt Investment 50,000 Fair Value Adjustment - Debt investment 50,000

Debit Credit Fair Value Adjustment - Debt investment 50,000 Unrealized holding gain - Debt Investment 50,000

Debit Credit Unrealized holding loss - Debt Investment 450,000 Fair Value Adjustment - Debt investment 450,000

Debit Credit Fair Value Adjustment - Debt investment 450,000 Unrealized holding gain - Debt Investment 450,000