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Prenella10 Prenella10
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5 years ago
On January 7, 2018, Webb Industries purchased an equity investment in Bloomberg Corporation for $500,000. Bloomberg Corporation stock is not actively traded and does not have a readily determinable fair value. On December 12, 2019, Webb Industries sells the Bloomberg stock for $600,000. What is the amount of the fair value adjustment on December 31, 2018?
A) $0
B) $100,000
C) $50,000
D) $25,000
Textbook 
Intermediate Accounting

Intermediate Accounting


Edition: 1st
Authors:
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wrote...
#1
5 years ago
 A
Explanation:  When there is not a readily determinable fair value for an equity investment, no fair value adjustment is made during the period of ownership.
Prenella10 Author
wrote...
#2
5 years ago
Enough said, this helped my grade so much
wrote...
#3
5 years ago
Perfect
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