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Vert Company purchased Dextrin common stock for $150,000. At December 31, Year 2, the Fair...

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Question

Accounting

Vert Company purchased Dextrin common stock for $150,000. At December 31, Year 2, the Fair value adjustment account had a debit balance of $10,000. On December 31, Year 3, the fair value of that investment was $154,000. Which of the following will be included in the related journal entry dated December 31, Year 3?

Multiple Choice

  • Debit to Fair value adjustment for $4,000

  • Credit to Fair value adjustment for $6,000

  • Debit to Fair value adjustment for $14,000

  • Credit to Fair value adjustment for $16,000

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