"Jeff Ltd buys shares in Zed Ltd for $1 000. Jeff Ltd does not intend to trade in Zed shares and has not made the election to account for its equity investments at fair value through other comprehensive income . Initial direct transaction costs are $50. At year end, the shares have a fair value of $ 1 200. Which of the following is correct:"

"At the end of the year the following journal is needed: Dr Investment in Zed 200, Cr Gain in fair value of equity investments (included in OCI) 200."

The shares in Zed Ltd are initially measured at $ 1 050 (1000 + 50).

None of the answers.

"At the end of the year the following journal is needed: Dr Investment in Zed $200, Cr Gain in fair value of equity investments (profit or loss) $200. "