ABC Co. acquired equity securities on May 25, 2020. The acquisition did not resultin significant influence over the investee company. The fair value of the investmentat December 31, 2020 was $76,000 and $108,000 at December 31, 2021.Theadjustment to the Fair Value Adjustment account at December 31, 2021 would be?a. $8,000 debit.b. $32,000 debit.c. $32,000 credit.d. $8,000 credit.

Solution: When acquistion did not result into significant influence over investee company,…

Co. acquired equity securities on May 25, 2020. The acquisition did not result nificant influence over the investee company. The fair value of the investment December 31, 2020 was $76,000 and $108,000 at December 31, 2021.The stment to the Fair Value Adjustment account at December 31, 2021 would be? 8,000 debit. -32,000 debit. 532,000 credit. 58,000 credit.

Co. acquired equity securities on May 25, 2020. The acquisition did not result nificant influence over the investee company. The fair value of the investment December 31, 2020 was $76,000 and $108,000 at December 31, 2021.The stment to the Fair Value Adjustment account at December 31, 2021 would be? 8,000 debit. -32,000 debit. 532,000 credit. 58,000 credit.

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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