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If the fair value adjustment account for trading investments has a debit? balance, ________.

a. it is added to the fixed asset account to determine carrying value

b. it is subtracted from the? short-term investmentlong dashtrading account to determine carrying value

c. it is subtracted from the fixed asset account to determine carrying value

d. it is added to the? short-term investmentlong dashtrading account to determine carrying value

Respuesta :

taskmasters

The answer is (D) it is added to the Short-term Investment–Trading account to determine carrying value. Fair value and carrying value are accounting measures to define the value of company’s assets and liabilities. Carrying value is based on the worth of an asset on the balance sheet while fair value is the assets worth when sold to market. 

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