On May 15, 2017, Grey Corp. purchased 1,000 common shares of Regal Bank for $32,000, as a Fair Value through Other Comprehensive Income (FV–OCI) equity investment. At December 31, 2017, the fair value of these shares was $35,400. The required adjusting entry to reflect this fact is
A. debit Fair value–OCI Investment, credit Holding Gain on Investment (OCI) $35,400.
B. debit Holding Gain on Investment (OCI), credit Fair value–OCI Investment $35,400.
C. debit Fair value–OCI Investment, credit Holding Gain on Investment (OCI) $3,400.
D. debit Holding Loss on Investment (OCI), credit Fair value–OCI Investment $3,400.
Answer:C
On May 15, 2017, Grey Corp. purchased 1,000 common shares of Regal Bank for $32,000, as a Fair Value through Other Comprehensive Income (FV–OCI) equity investment. At December 31, 2017, the fair value of these shares was $35,400. The required adjusting entry to reflect this fact is
A. debit Fair value–OCI Investment, credit Holding Gain on Investment (OCI) $35,400. B. debit Holding Gain on Investment (OCI), credit Fair value–OCI Investment $35,400. C. debit Fair value–OCI Investment, credit Holding Gain on Investment (OCI) $3,400. D. debit Holding Loss on Investment (OCI), credit Fair value–OCI Investment $3,400.