On October 12, 2010, Neptune Corporation invested $700,000 in short-term availab
ID: 2361453 • Letter: O
Question
On October 12, 2010, Neptune Corporation invested $700,000 in short-term available-for-sale marketable securities. The market value of this investment was $730,000 at December 31, 2010, but had slipped to $725,000 by December 31, 2011.5. Assuming Neptune does not sell this investment, the mark-to-market adjustment necessary at December 31, 2011, includes: A $5,000 debit to Unrealized Holding Gain on Investments. A $25,000 credit to Unrealized Holding Gain on Investments. A $5,000 debit to Investments in Marketable Securities. A $725,000 debit to Investments in Marketable Securities.
On October 12, 2010, Neptune Corporation invested $700,000 in short-term available-for-sale marketable securities. The market value of this investment was $730,000 at December 31, 2010, but had slipped to $725,000 by December 31, 2011.
5. Assuming Neptune does not sell this investment, the mark-to-market adjustment necessary at December 31, 2011, includes: A $5,000 debit to Unrealized Holding Gain on Investments. A $25,000 credit to Unrealized Holding Gain on Investments. A $5,000 debit to Investments in Marketable Securities. A $725,000 debit to Investments in Marketable Securities.
5. 5. Assuming Neptune does not sell this investment, the mark-to-market adjustment necessary at December 31, 2011, includes: A $5,000 debit to Unrealized Holding Gain on Investments. A $25,000 credit to Unrealized Holding Gain on Investments. A $5,000 debit to Investments in Marketable Securities. A $725,000 debit to Investments in Marketable Securities.
Assuming Neptune does not sell this investment, the mark-to-market adjustment necessary at December 31, 2011, includes: A $5,000 debit to Unrealized Holding Gain on Investments. A $25,000 credit to Unrealized Holding Gain on Investments. A $5,000 debit to Investments in Marketable Securities. A $725,000 debit to Investments in Marketable Securities.
A $5,000 debit to Unrealized Holding Gain on Investments. A $25,000 credit to Unrealized Holding Gain on Investments. A $5,000 debit to Investments in Marketable Securities. A $725,000 debit to Investments in Marketable Securities.
A $5,000 debit to Unrealized Holding Gain on Investments. A $25,000 credit to Unrealized Holding Gain on Investments. A $5,000 debit to Investments in Marketable Securities. A $725,000 debit to Investments in Marketable Securities.
Explanation / Answer
A $5,000 debit to Unrealized Holding Gain on Investments
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