Question
On May 15, 2020, Bagle Corp. purchased 1,000 common shares of Holter Inc. for $24,000, as a Fair Value through Other Comprehensive Income (FV-OCI) equity
On May 15, 2020, Bagle Corp. purchased 1,000 common shares of Holter Inc. for $24,000, as a Fair Value through Other Comprehensive Income (FV-OCI) equity investment. At December 31, 2020, the fair value of these shares was $26,550. The required adjusting entry to reflect this fact is
debit Unrealized Gain or Loss (OCI), credit Fair value-OCI Investment $26,550.
debit Unrealized Gain or Loss (OCI), credit Fair value-OCI Investment $2,550.
debit Fair value-OCI Investment, credit Unrealized Gain or Loss (OCI) $2,550.
debit Fair value-OCI Investment, credit Unrealized Gain or Loss (OCI) $26,550.
which one is the correct answer
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
