Question
On October 12, Year 1, Neptune Corporation invested $700,000 in marketable equity securities. The market value of this investment was $730,000 at December 31, Year
On October 12, Year 1, Neptune Corporation invested $700,000 in marketable equity securities. The market value of this investment was $730,000 at December 31, Year 1, but had slipped to $725,000 by December 31, Year 2. Assuming Neptune does not sell this investment, the financial statements prepared at December 31, Year 2, will report: Multiple Choice Investment in Marketable Securities of $725,000 in assets and a $25,000 Unrealized Holding Gain on Investments in stockholders' equity on its balance sheet. Investments in Marketable Securities of $700,000 in assets on its balance sheet. Investments in Marketable Securities of $700,000 in assets on its balance sheet, and a $25,000 Unrealized Holding Loss on Investments, which reduces net income on the income statement.
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