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Brandy Corporation's trading portfolio at the end of the year is as follows: Security‾ Cost‾ Fair Value‾ Common Stock C $10,000$12,000 Common Stock D 9,000‾5,000‾$19,000‾$17,000‾\begin{array}{lrr}\underline{\text { Security}}&\underline{\text { Cost}}&\underline{\text { Fair Value}}\\\text { Common Stock C } & \$ 10,000 & \$ 12,000 \\\text { Common Stock D } & \underline{9,000} & \underline{5,000}\\&\underline{\$19,000}&\underline{\$17,000}\end{array} Security Common Stock C Common Stock D Cost$10,0009,000$19,000 Fair Value$12,0005,000$17,000 At the end of the year Brandy Corporation should
A) set up a Fair Value Adjustment account for Stock D.
B) set up a Fair Value Adjustment account for the portfolio.
C) recognize an Unrealized Gain or Loss-Income for $4000.
D) report a loss on the income statement for $4000 under "Other expenses and losses."
On Jun 19, 2024