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Six months ago, a company purchased stock investments with insignificant influence for $70,000. This is the...

Six months ago, a company purchased stock investments with insignificant influence for $70,000. This is the company’s first and only purchase of stock. The current year-end fair value of the stock is $74,000. The company should record a: Multiple Choice Debit to Unrealized Loss-Income for $4,000. Credit to Investment Revenue for $4,000. Debit to Investment Revenue for $4,000. Debit to Unrealized Gain-Equity for $4,000. Credit to Dividend Revenue for $4,000.

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✔ Recommended Answer
Answer #1

The entry would be

Unrealized loss - Income 4,000
Unrealized gain - Equity 4,000

(74,000-70,000)

Option A is the answer

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