Founded on January 1, 20X1, Gehl Company had the following passive investments in equity securities at the end of 20X1 and 20X2: Equity SecurityCost12/31/X2 Fair ValueA$96,000$94,000 B 184,000 162,000 C 126,000 136,000 Required:If the company recorded a $4,000 debit to its Fair value adjustment account as its 20X2 fair value adjustment, what must have been the unrealized gain or loss reported at the end of 20X1?

An unrealized gain is an increase in the value of an asset or investment that an investor has not…

Answered: Founded on January 1, 20X1, Gehl…

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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Founded on January 1, 20X1, Gehl Company had the following passive investments in equity securities at the end of 20X1 and 20X2:

Equity Security	Cost	12/31/X2 Fair Value
A	$	96,000	$	94,000
B		184,000		162,000
C		126,000		136,000

Required:

If the company recorded a $4,000 debit to its Fair value adjustment account as its 20X2 fair value adjustment, what must have been the unrealized gain or loss reported at the end of 20X1?

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