On November 1, 2020, Fashion Supplies, Inc. purchased 2,000 shares of Everyday Couture, Inc. for $30,000. Everyday Couture shares are actively traded. The per share stock prices were: Share Price November 1, 2020 $15.00 December 15, 2020 14.50 December 31, 2020 16.00 Fashion Supplies’ shares represent a 1% interest in Everyday Couture. Fashion Supplies does not have significant influence over Everyday Couture. On December 15, 2020, Fashion Supplies sold 500 shares of Everyday Couture at the trading price. Fashion Supplies made a fair value adjustment to the investment in the 500 shares before recording the sale of the securities. In the entry to record the sale on December 15, 2020, what was the amount posted to the Fair Value Adjustment account? Group of answer choices $0 $250 Debit $500 Debit $250 Credit
On November 1, 2020, Fashion Supplies, Inc. purchased 2,000 shares of Everyday Couture, Inc. for $30,000. Everyday Couture shares are actively traded. The per share stock prices were:
Share Price
November 1, 2020
$15.00
December 15, 2020
14.50
December 31, 2020
16.00
Fashion Supplies’ shares represent a 1% interest in Everyday Couture. Fashion Supplies does not have significant influence over Everyday Couture.
On December 15, 2020, Fashion Supplies sold 500 shares of Everyday Couture at the trading price. Fashion Supplies made a fair value adjustment to the investment in the 500 shares before recording the sale of the securities.
In the entry to record the sale on December 15, 2020, what was the amount posted to the Fair Value Adjustment account?
Group of answer choices
$0
$250 Debit
$500 Debit
$250 Credit
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