Deutsche Corporation's trading portfolio at the end of the year is as follows:

Investment Cost Market Value

Common Stock A $16,000 $18,000

Common Stock B 13,000 7,000

$29,000 $25,000

Deutsche subsequently sells Common Stock B for $17,000. What entry is made to record the sale?

Answer

		Cash 17,000 Stock Investments 17,000
		Cash 17,000 Market Adjustment 4,000 Stock Investments 13,000
		Cash 17,000 Stock Investments 13,000 Gain on Sale of Stock Investments 4,000
		Cash 17,000 Stock Investments 7,000 Gain on Sale of Stock Investments 10,000