on december 31 2014 mumphrey co has the following costs and fair values for its inve 617538
On December 31, 2014, Mumphrey Co. has the following costs and fair values for its investments classified as trading securities:
|
Investments |
Cost |
Fair Value |
|
Cub Co. |
$20,000 |
$25,000 |
|
Wrigley Co. |
34,000 |
32,000 |
The adjusting entry for Mumphrey Co. will include a debit to:
a. Unrealized Loss—Income of $5,000.
b. Fair Value Adjustment—Trading of $2,000.
c. Fair Value Adjustment—Trading of $3,000.
d. Unrealized Gain—Income of $3,000.