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Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these

Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these debt securities follows. The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X1 is:

Available-for-Sale Securities Cost Fair Value
December 31, 20X1 $ 275,000 $ 261,000
December 31, 20X2 $ 360,000 $ 376,500

Multiple Choice

  • Debit Fair Value Adjustment Available-for-Sale (LT) $14,000; Credit Unrealized Gain Equity $14,000.

  • Debit Unrealized Loss Equity $14,000; Credit Fair Value Adjustment Available-for-Sale (LT) $14,000.

  • Debit Fair Value Adjustment Available-for-Sale (LT) $14,000; Credit Unrealized Loss Equity $14,000.

  • Debit Unrealized Gain Equity $14,000; Credit Fair Value Adjustment Available-for-Sale (LT) $14,000.

  • Debit Realized Loss Income $14,000; Credit Fair Value Adjustment Available-for-Sale (ST) $14,000.

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