Fair Value$12,0005,000$17,000SecurityCommon Stock CCost$10,0008,000$18,000Common Stock DSanser subsequently sells Stock C for $12,000. What entry is made to record the sale?a. Cash ..12,000Stock Investments.12,000b. Cash..12,000Fair Value Adjustment TradingStock Investments .2,00010,000c. Cash ..12,000Stock Investments...Gain on Sale of Stock Investments..10,0002,000d. Cash .12,0006,0006,000Stock Investments.Gain on Sale of Stock Investments..

The journal entries are prepared to record day to day transactions of the business on regular basis.

Answered: Security Common Stock c Common Stock D…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 10MCQ

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