At December 31, 2020, Platinum Corp If the Investments Are Being Accounted for Under the Fair

At December 31, 2020, Platinum Corp. has the following equity securities (no significant influence) that were purchased earlier in 2020, its first year of operation: $\begin{array}{c}\begin{array}{lll}\\\text {Security A}\\\quad\quad\quad\quad\text {B}\\\text {Totals}\\\end{array}\begin{array}{l}\underline{\text { Cost }}\\\$ 50,000 \\\underline{70,000}\\\underline{{\$ 120,000}} \end{array}\begin{array}{c}\underline{\text { Market } }\\\$ 51,875 \\\underline{77,500}\\\underline{\$ 129,375} \end{array}\end{array}$
If the investments are being accounted for under the fair value through net income (FV-NI) model, the total book value of the investment accounts should

A) be decreased by $ 9,375.
B) be increased by $ 9,375.
C) be decreased by $ 20,000.
D) remain unchanged.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free