Rolling Hills Productions held investments in equity securities (in Elban Company)with a fair value of $75,000 at December 31, 2018. These investments cost Rolling HillsProductions $68,000 on January 1, 2018. What is the appropriate amount for Rolling HillsProductions to report for these investments on its December 31, 2018, balance sheet?(Assume that Rolling Hills has insignificant influence over Elban Company.)a. $68,000b. A $7,000 gainc. $75,000d. Cannot be determined from the data given

Question

Rolling Hills Productions held investments in equity securities (in Elban Company)
with a fair value of $75,000 at December 31, 2018. These investments cost Rolling Hills
Productions $68,000 on January 1, 2018. What is the appropriate amount for Rolling Hills
Productions to report for these investments on its December 31, 2018, balance sheet?
(Assume that Rolling Hills has insignificant influence over Elban Company.)
a. $68,000
b. A $7,000 gain
c. $75,000
d. Cannot be determined from the data given

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