Brandy Corporation's trading portfolio at the end of the year is as follows: Security ‾ Cost ‾ Fair Value ‾ Common Stock C $ 10 , 000 $ 12 , 000 Common Stock D 8 , 000 ‾ 5 , 000 ‾ $ 18 , 000 ‾ $ 17 , 000 ‾ \begin{array}{lrr}\underline{ ext { Security}} & \underline{ ext { Cost}} & \underline{ ext { Fair Value}}\ ext { Common Stock C } & \$ 10,000 & \$ 12,000 \ ext { Common Stock D } & \underline{8,000} & \underline{5,000}\ & \underline{\$18,000} & \underline{\$17,000}\end{array} Security Common Stock C Common Stock D Cost $10 , 000 8 , 000 $18 , 000 Fair Value $12 , 000 5 , 000 $17 , 000 Brandy subsequently sells Stock D for $10000. What entry is made to record the sale? a. Cash. 10 , 000 Stock Investments. 10 , 000 \begin{array}{llr} ext {Cash. } & 10,000\ ext { Stock Investments.} & & 10,000\\end{array} Cash. Stock Investments. 10 , 000 10 , 000 b. Cash. 10 , 000 Fair Value Adjustment-Trading 2 , 000 Stock Investments. 8 , 000 \begin{array}{llr} ext { Cash.} & 10,000\ ext { Fair Value Adjustment-Trading } & & 2,000\ ext {Stock Investments. } & & 8,000\end{array} Cash. Fair Value Adjustment-Trading Stock Investments. 10 , 000 2 , 000 8 , 000 c. Cash. 10 , 000 Stock Investments. 8 , 000 Gain on Sale of Stock Investments 2 , 000 \begin{array}{llr} ext {Cash. } & 10,000\ ext { Stock Investments. } & & 8,000\ ext { Gain on Sale of Stock Investments } & & 2,000\end{array} Cash. Stock Investments. Gain on Sale of Stock Investments 10 , 000 8 , 000 2 , 000 d. Cash. 10 , 000 Stock Investments. 5 , 000 Gain on Sale of Stock Investments 5 , 000 \begin{array}{llr} ext { Cash.} & 10,000\ ext { Stock Investments. } & & 5,000\ ext {Gain on Sale of Stock Investments } & & 5,000\end{array} Cash. Stock Investments. Gain on Sale of Stock Investments 10 , 000 5 , 000 5 , 000

Question

Brandy Corporation's trading portfolio at the end of the year is as follows:    Security ‾  Cost ‾  Fair Value ‾  Common Stock C  $ 10 , 000 $ 12 , 000  Common Stock D  8 , 000 ‾ 5 , 000 ‾ $ 18 , 000 ‾ $ 17 , 000 ‾ \begin{array}{lrr}\underline{	ext { Security}} & \underline{	ext { Cost}} & \underline{	ext { Fair Value}}\	ext { Common Stock C }  &  \$ 10,000  &  \$ 12,000 \	ext { Common Stock D }  &  \underline{8,000}  &  \underline{5,000}\ & \underline{\$18,000} & \underline{\$17,000}\end{array}  Security ​  Common Stock C   Common Stock D  ​  Cost ​ $10 , 000 8 , 000 ​ $18 , 000 ​ ​  Fair Value ​ $12 , 000 5 , 000 ​ $17 , 000 ​ ​ Brandy subsequently sells Stock D for $10000. What entry is made to record the sale? a. Cash.  10 , 000  Stock Investments. 10 , 000 \begin{array}{llr}  	ext {Cash.  }  & 10,000\ 	ext {  Stock Investments.}  & & 10,000\\end{array} Cash.   Stock Investments. ​ 10 , 000 ​ 10 , 000 ​ b.  Cash. 10 , 000  Fair Value Adjustment-Trading  2 , 000 Stock Investments.  8 , 000 \begin{array}{llr}  	ext {  Cash.}  & 10,000\ 	ext { Fair Value Adjustment-Trading }  & & 2,000\ 	ext {Stock Investments.  }  & & 8,000\end{array}  Cash.  Fair Value Adjustment-Trading  Stock Investments.  ​ 10 , 000 ​ 2 , 000 8 , 000 ​ c. Cash.  10 , 000  Stock Investments.  8 , 000  Gain on Sale of Stock Investments  2 , 000 \begin{array}{llr}  	ext {Cash.  }  & 10,000\ 	ext { Stock Investments. }  & & 8,000\ 	ext { Gain on Sale of Stock Investments }  & & 2,000\end{array} Cash.   Stock Investments.   Gain on Sale of Stock Investments  ​ 10 , 000 ​ 8 , 000 2 , 000 ​ d.  Cash. 10 , 000  Stock Investments.  5 , 000 Gain on Sale of Stock Investments  5 , 000 \begin{array}{llr}  	ext {  Cash.}  & 10,000\ 	ext { Stock Investments. }  & & 5,000\ 	ext {Gain on Sale of Stock Investments  }  & & 5,000\end{array}  Cash.  Stock Investments.  Gain on Sale of Stock Investments  ​ 10 , 000 ​ 5 , 000 5 , 000 ​

jefeson garcia · Accepted Answer

Final Answer : C

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