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On January 1, 2016, Jones Company bought 5000 shares of ABC company stock. This represents...

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Accounting

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On January 1, 2016, Jones Company bought 5000 shares of ABC company stock. This represents 15% of the shares available from ABC Company. Jones paid $5.00 per share for the stock. During 2016, ABC earned $50,000 in net income: Paid total dividends of $20,000: and had the same number of shares available. Assume the stock is accounted for as available for sale security assume the fair value of the stock on Dec 31, 2016 is $6.00 per share What is the amount of the debit to the fair value adjustment account a. There is no debit to the account b. $1,000 Assume the stock is accounted for as available for sale security assume the fair value of the stock on Dec 31, 2016 is $6.00 per share What is the amount of the debit to the fair value adjustment account a. There is no debit to the account b. $1,000 C. $5,000 d. $25,000 e. none of the above

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