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A firm purchased 5,000 shares of another firm at $15.00 per share and the investment represents passive influence. At year-end, the market price of the stock is $25.00. The revaluation adjustment entry would require a debit to the fair value adjustment account.

A firm purchased 5,000 shares of another firm at $15.00 per share and the investment represents passive influence. At year-end, the market price of the stock is $25.00. The revaluation adjustment entry would require a debit to the fair value adjustment account.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A firm purchased 5,000 shares of another firm at $15.00 per share and the investment represents passive influence. At year-end, the market price of the stock is $25.00. The revaluation adjustment entry would require a debit to the fair value adjustment account. Select one: O True O False
Transcribed Image Text:A firm purchased 5,000 shares of another firm at $15.00 per share and the investment represents passive influence. At year-end, the market price of the stock is $25.00. The revaluation adjustment entry would require a debit to the fair value adjustment account. Select one: O True O False
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