Cost and fair value data for the trading securities of McMahon Company at December 31 2017 are $110000 and $85000 respectively. Which of the following correctly presents the adjusting journal entry to record the securities at fair value? a. Dec. 31 Unrealized Loss - Income. 25 , 000 Trading Securities. 25 , 000 \begin{array}{llr} ext {Dec. 31 Unrealized Loss - Income. } & 25,000\ ext { Trading Securities. } & & 25,000\\end{array} Dec. 31 Unrealized Loss - Income. Trading Securities. 25 , 000 25 , 000 b. Dec. 31 Unrealized Loss - Income. 25 , 000 Trading Securities. 25 , 000 \begin{array}{llr} ext { Dec. 31 Unrealized Loss - Income. } & 25,000\ ext { Trading Securities. } & & 25,000\\end{array} Dec. 31 Unrealized Loss - Income. Trading Securities. 25 , 000 25 , 000 c. Dec. 31 Unrealized Loss - Income. 25 , 000 Fair Value Adjustment-Trading 25 , 000 \begin{array}{llr} ext { Dec. 31 Unrealized Loss - Income. } & 25,000\ ext { Fair Value Adjustment-Trading} & & 25,000\\end{array} Dec. 31 Unrealized Loss - Income. Fair Value Adjustment-Trading 25 , 000 25 , 000 d. Dec. 31 Unrealized Loss - Income. 25 , 000 Unrealized Loss-Income. 25 , 000 \begin{array}{llr} ext {Dec. 31 Unrealized Loss - Income. } & 25,000\ ext { Unrealized Loss-Income. } & & 25,000\\end{array} Dec. 31 Unrealized Loss - Income. Unrealized Loss-Income. 25 , 000 25 , 000

Question

Cost and fair value data for the trading securities of McMahon Company at December 31 2017 are $110000 and $85000 respectively. Which of the following correctly presents the adjusting journal entry to record the securities at fair value? a. Dec. 31 Unrealized Loss - Income.  25 , 000  Trading Securities.  25 , 000 \begin{array}{llr}  	ext {Dec. 31 Unrealized Loss - Income.  }  & 25,000\ 	ext { Trading Securities.  }  & & 25,000\\end{array} Dec. 31 Unrealized Loss - Income.   Trading Securities.  ​ 25 , 000 ​ 25 , 000 ​ b.  Dec. 31 Unrealized Loss - Income.  25 , 000  Trading Securities.  25 , 000 \begin{array}{llr}  	ext { Dec. 31 Unrealized Loss - Income. }  & 25,000\ 	ext {  Trading Securities. }  & & 25,000\\end{array}  Dec. 31 Unrealized Loss - Income.   Trading Securities.  ​ 25 , 000 ​ 25 , 000 ​ c.  Dec. 31 Unrealized Loss - Income.  25 , 000  Fair Value Adjustment-Trading 25 , 000 \begin{array}{llr}  	ext { Dec. 31 Unrealized Loss - Income. }  & 25,000\ 	ext {   Fair Value Adjustment-Trading}  & & 25,000\\end{array}  Dec. 31 Unrealized Loss - Income.   Fair Value Adjustment-Trading ​ 25 , 000 ​ 25 , 000 ​ d. Dec. 31 Unrealized Loss - Income.  25 , 000  Unrealized Loss-Income.  25 , 000 \begin{array}{llr}  	ext {Dec. 31 Unrealized Loss - Income.  }  & 25,000\ 	ext { Unrealized Loss-Income. }  & & 25,000\\end{array} Dec. 31 Unrealized Loss - Income.   Unrealized Loss-Income.  ​ 25 , 000 ​ 25 , 000 ​

Valissa Abadia · Accepted Answer

Final Answer : C

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