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Investment Cost Market Value Common Stock A $16,000 $18,000 Common Stock B 13,00

ID: 2379886 • Letter: I

Question

Investment Cost Market Value

Common Stock A $16,000 $18,000

Common Stock B 13,000 7,000

$29,000 $25,000

Deutsche subsequently sells Common Stock B for $17,000. What entry is made to record the sale?

Answer

Cash 17,000

Stock Investments 17,000

Cash 17,000

Market Adjustment 4,000

Stock Investments 13,000

Cash 17,000

Stock Investments 13,000

Gain on Sale of Stock Investments 4,000

Cash 17,000

Stock Investments 7,000

Gain on Sale of Stock Investments 10,000

Cash 17,000

Stock Investments 17,000

Cash 17,000

Market Adjustment 4,000

Stock Investments 13,000

Cash 17,000

Stock Investments 13,000

Gain on Sale of Stock Investments 4,000

Cash 17,000

Stock Investments 7,000

Gain on Sale of Stock Investments 10,000

Explanation / Answer

Cash 17,000

Stock Investments 13,000

Gain on Sale of Stock Investments 4,000

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