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A company purchased shares of stock of another company for $75,000 during 20X1. The share's fair value was $79,000 at the end of 20X1 and
A company purchased shares of stock of another company for $75,000 during 20X1. The share's fair value was $79,000 at the end of 20X1 and $81,000 at the end of 20X2. Which of the following statements correctly describes the investor's accounting for the investment?
A. An unrealized gain of $6,000 was recorded during 20X2
B. A realized gain of $2,000 was recorded during 20X2
C. A realized gain of $4,000 was recorded during 20X1
D. An unrealized gain of $2,000 was recorded during 20X2
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