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Willy Wonka Corporation reports the following information as of December 31, 2021: Item Amount Equity investments at cost $494,000 Fair Value Adjustment balance before 2021
Willy Wonka Corporation reports the following information as of December 31, 2021:
| Item | Amount |
|---|---|
| Equity investments at cost | $494,000 |
| Fair Value Adjustment balance before 2021 adjustment | 37,000 Dr. |
| Market value of equity investments | $448,000 |
Which of the following journal entries should Willy Wonka Corporation record on December 31, 2021?
| Unrealized Holding Gain/Loss -- Income | 46,000 | |
| Fair Value Adjustment | 46,000 |
| Fair Value Adjustment | 46,000 | |
| Unrealized Holding Gain/Loss -- Income | 46,000 |
| Fair Value Adjustment | 83,000 | |
| Unrealized Holding Gain/Loss -- Income | 83,000 |
| Unrealized Holding Gain/Loss -- Income | 83,000 | |
| Fair Value Adjustment | 83,000 |
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Authors: Greg Shields
1st Edition
1647483255, 978-1647483258
