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Wells Inc. reported these transactions relating to marketable Held for Trading Investments intended to generate net income and to be sold in the near term:
-The entry, if any is required, to record the value of the investment on December 31 would include a debit to
A) Realized Losses for $450.
B) Unrealized Loss for $750.
C) No entry is required.
D) Unrealized Losses of $450.

Question

Use the following information to answer questions.
Wells Inc. reported these transactions relating to marketable Held for Trading Investments intended to generate net income and to be sold in the near term: 
-The entry, if any is required, to record the value of the investment on December 31 would include a debit to
A) Realized Losses for $450. 
B) Unrealized Loss for $750. 
C) No entry is required. 
D) Unrealized Losses of $450.

Quizplus · Accepted Answer

Unrealized losses are recognized when the fair value of an investment is less than its cost.

Use the Following Information to Answer Questions