On January 1, 2019, Grimsley Inc. purchased 10,000 shares of Brown Company for $100/share. Brown...
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On January 1, 2019, Grimsley Inc. purchased 10,000 shares of Brown Company for $100/share. Brown Company has 500,000 common shares outstanding. On December 31, 2019, Brown Company has a market value of $110/share. Grimsley Inc. would record the following journal entry on December 31, 2019 related to the investment in Brown Company: Debit: Investment $1,100,000 Credit: Unrealized Gain $1,100,000 Debit: Cash $100,000 Credit: Investment $100,000 Debit: Unrealized Gain $1,100,000 Credit: Investment $1,100,000 Debit: Investment $100,000 Credit: Unrealized Gain $100,000 None of the answer options is correct
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