In its first year of operations, Rodolfo Company purchased available-for-sale securities at a total cost of $53,000. On December 31, the end of Rodolfo's fiscal year, the fair market value of those investments totaled $57,000. As a result of these investments, Rodolfo Company will report a. Investment in Available-for-Sale Securities of $57,000 b. Investment in Available-for-Sale Securities of $53,000 c. Unrealized Increase in Value of Available-for-Sale Securities of $4,000 on the income statement as ordinary income d. a credit balance in the contra account to Investment in Available-for-Sale Securities of $4,000 The entry to record a sale of available-for-sale securities for $65,000 on January 3, 2011, that were purchased for $52,000 on November 21, 2010, and had a fair value on December 31, 2010, of $57,000 would include a a. credit to Unrealized Increase/Decrease in Value of Available-for-Sale Securities of $8,000 b. debit to Unrealized Increase/Decrease in Value of Available-for-Sale Securities of $5,000 c. debit to Allowance for Change in Value of Investment of $5,000 d. credit to Gain on Disposal of Securities Available for Sale of $8,000 Withers Company has available-for-sale debt and equity securities that on December 31, 2010, had a cost of $105,000 and a market value of $102,000. The market value rose to $117,000 by December 31, 2011. What accounting action is required on December 31, 2011? a. Allowance for Change in Value should be credited for $15,000. b. Unrealized Increase/Decrease in Value should be debited for $12,000. c. Allowance for Change in Value should be debited for $15,000. d. Unrealized Increase/Decrease in Value should be credited for $12,000. Nixon Company purchased 10,000 shares of Kostas Company as an available-for-sale security at $45 per share. Brokerage fees amounted to $1,000 and transfer taxes were $750. The investment should be recorded at a. $450,000 b. $450,750 c. $451,000 d. $451,750 On January 1, 2010, Martin Company purchased Jetson Company's 9% bonds with a face amount of $200,000 for $213,420 to yield 8%. The bonds mature on January 1, 2020, and Martin has both the intent and ability to hold these bonds to maturity. The bonds pay interest annually on December 31. Assuming Martin uses the effective interest method of amortizing the bond premium, interest revenue reported on the December 31, 2010, balance sheet would be a. $16,000 b. $17,074 c. $18,000 d. $18,926