Question
Vert Company purchased Dextrin common stock for $150,000. At December 31, Year 2, the Fair value adjustment account had a debit balance of $10,000. On
Vert Company purchased Dextrin common stock for $150,000. At December 31, Year 2, the Fair value adjustment account had a debit balance of $10,000. On December 31, Year 3, the fair value of that investment was $154,000. Which of the following will be included in the related journal entry dated December 31, Year 3?
Multiple Choice
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Debit to Fair value adjustment for $4,000
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Credit to Fair value adjustment for $6,000
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Debit to Fair value adjustment for $14,000
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Credit to Fair value adjustment for $16,000
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Financial Accounting The Impact On Decision Makers An Alternative To Debits And Credits
Authors: Gary A. Porter, Curtis L. Norton
4th Edition
0324272669, 978-0324272666
