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Fargo Corporation has a long-term investment in the common stock of another entity. The investment does...

Fargo Corporation has a long-term investment in the common stock of another entity. The investment does not render the investor with the ability to exercise significant influence or control over the investee. A journal entry to record a $10,000 decline in market value below cost would necessarily involve:

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Answer #1

A journal entry to record a $10,000 decline in market value below cost would necessarily involve

a debit to unrealized Gain/ loss

The journal entry

Credit Accounting title and explanation Unrealized Gain/Loss - OCI Available-for-Sale Securities. Debit $10,000 $10,000

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