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Question
A company had investments in long-term available-for-sale securities. At the end of the current year, the company's portfolio had a $731,000 cost and $730,000 market value.
What is the current year's adjustment to market value given the following account balances at the end of the prior year?
| Market Adjustment Available-for-Sale | Unrealized Gain (Loss) Equity | |||
| 5,000 | 5,000 | |||
A.
| Market Adjustment Available-for-Sale............... | 1,000 | |
| Unrealized Gain Equity.......................................... | 1,000 |
B.
| Market Adjustment Available-for-Sale............... | 6,000 | |
| Unrealized Gain Equity.......................................... | 6,000 |
C.
| Unrealized Gain Equity.......................................... | 1,000 | |
| Market Adjustment Available-for-Sale............... | 1,000 |
D.
| Unrealized Gain (Loss) Equity.......................................... | 6,000 | |
| Market Adjustment Available-for-Sale............... | 6,000 |
E.
| Unrealized Gain (Loss) Equity.................................. | 4,000 | |
| Market Adjustment Available-for-Sale............... | 4,000 |
Answer
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