the required year-end adjusting entry for this investment is:

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 17P
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On February 11, 2021, Brownie Corp. purchased 500 common shares of Candy Inc. for $45,000 and classified the investment as FV-OCI.  At December 31, 2021, the fair value of the shares is $42,160.  Assuming that Brownie has a December 31 year-end, the required year-end adjusting entry for this investment is:

 

Question 13 options:

 

DR FV-OCI investments $42,160  CR AOCI $42,160

 

DR AOCI $2,840  CR FV-OCI investments $2,840

 

DR AOCI $42,160  CR FV-OCI investments $42,160

 

DR FV-OCI investments $2,840  CR AOCI $2,840

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