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

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 15E

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

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