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 1,
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 fair value accounting adjustment necessary at December 31, Year 2, includes: 1 $25,000 credit to Unrealized Holding Gain on Investments. 2 $5,000 debit to Unrealized Holding Gain on Investments. 3 $725,000 debit to Investments in Marketable Securities. 4 $5,000 debit to Investments in Marketable Securities.
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