Please Introduction and show work please no plagiarism check I request McGinn Company purchased 10% of RJ Company's common stock during 2019for $100,000. The 10% investment in RJ had a $90,000 fair value at the end of2019 and a $105,000 fair value at the end of 2020.Which of the following statements is correct?The 2019 unrealized loss is $10,000, but is not included in McGinn's 2019 netincome.The 2020-unrealized gain is $5,000, and is included in McGinn's 2020 net income.O The 2019 unrealized loss is $10,000 and is reported on McGinn's balance sheet as acomponent of stockholders' equity.O The 2020 unrealized gain is $15,000 and is included in McGinn's 2020 net income.

Unrealized losses are widespread in financial markets, where the value of investments, securities,…

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Business

Accounting

please no plagiarism

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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Question

Please Introduction and show work please no plagiarism check I request

McGinn Company purchased 10% of RJ Company's common stock during 2019
for $100,000. The 10% investment in RJ had a $90,000 fair value at the end of
2019 and a $105,000 fair value at the end of 2020.
Which of the following statements is correct?
The 2019 unrealized loss is $10,000, but is not included in McGinn's 2019 net
income.
The 2020-unrealized gain is $5,000, and is included in McGinn's 2020 net income.
O The 2019 unrealized loss is $10,000 and is reported on McGinn's balance sheet as a
component of stockholders' equity.
O The 2020 unrealized gain is $15,000 and is included in McGinn's 2020 net income.

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