At january 1 2011 a company had a net valuation allowance, Ask an Expert

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At January 1, 2011, a company had a net valuation allowance account credit balance for investments in securities available-for-sale of $20,000. At December 31, 2011, the total cost of the relevant portfolio was $300,000, and total market value was $275,000. The entry required on December 31, 2011, would reflect a

A) $5,000 decrease in net income.

B) $25,000 decrease in net income.

C) credit of $5,000 to the valuation allowance account.

D) debit of $25,000 to the unrealized loss account.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9443906

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