Question
Skywalker Limited purchased shares of Jedi Jewelers during 2015 for $124,000. Skywalker elected the fair value option for accounting for this investment. At year end
Skywalker Limited purchased shares of Jedi Jewelers during 2015 for $124,000. Skywalker elected the fair value option for accounting for this investment. At year end 2015, 2016, and 2017, this investment had a fair value of $120,000, $130,000, and $135,000, respectively. How will this investment be reported on the Balance Sheet at yearend, 2017?
A. Investment in Jedi$130,000, plus Fair Value AdjustmentFair Value Option $5,000
B.Investment in Jedi$124,000, plus Fair Value AdjustmentFair Value Option$11,000
C.Investment In Jedi$124,000
D.Investment in Jedi$135,000
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Financial Accounting Fundamentals
Authors: John Wild, Ken Shaw, Barbara Chiappetta
6th edition
1259726916, 978-1259726910
