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On June 30, 20X4, Prichard Company purchased some stock for $5,000. This stock was worth $6,000 on December 31, 20X4, and it was worth $5,500
On June 30, 20X4, Prichard Company purchased some stock for $5,000. This stock was worth $6,000 on December 31, 20X4, and it was worth $5,500 on December 31, 20X5. The investment has been properly classified as a trading investment since it was purchased. The entry necessary on December 31, 20X5, to record the change in value would include a ________. debit of $500 to the loss on trading investment account that would be reported on the income statement in the category of other gains and losses
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