www.abzwater.com TM

ADVANCED ACCOUNTING


Question:


On June 1, 2015, Abzwater.com purchased 1000 shares of iStrategic.com for USD 84 per share. On December 31, 2015, the market price of iStrategic.com is USD 76.If iStrategic.com is the only FVNI investment, which of the following statements is incorrect

On December 31, 2015, USD 76000 is debited in cash account

On December 31, 2015, the FVNI investments at fair value in balance sheet of Abzwater.com is USD 76000

On December 31, 2015, USD 8000 is debited in unrealized gain (loss) on FVNI investments account

On December 31, 2015, the unrealized loss on FVNI investments reported in the income statement of Abzwater.com is USD 8000