On May 1, 2022, Kakuma, Inc. purchased 90,000 of Kakamega Co.'s common stock for $11.95...
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Accounting
On May 1, 2022, Kakuma, Inc. purchased 90,000 of Kakamega Co.'s common stock for $11.95 a share. The finance team elected to record the investment using the fair value method. At the end of 2022, Kakamega Co.'s stock price was $10.99 a share. If the stock price at the end of 2023 is $10.44 per share, what will Kakuma, Inc. record as the unrealized gain or loss on the investment in 2023?
$49,500 loss
$135,900 loss
$86,400 loss
They will not record an unrealized gain or loss for this investment in 2023.
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