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Answer :
Final answer:
A)Unrealized Gain or Loss-OCI on Apple Corp 17700. The detailed entry (option A), showing gains and losses for each particular investment, offers the most insight into individual investment performance.
Explanation:
The question is asking about how to record year-end adjustments for a portfolio of investments using the FV-OCI (Fair Value through Other Comprehensive Income) model.
The most informative entry to record these adjustments will be the detailed option (A). Here's why:
Under the FV-OCI model, you record the unrealized gains or losses in the OCI (Other Comprehensive Income) part of the owners' equity section. This means that changes in the fair value of the investments are not reported in the income statement until they are realized by sale. Instead, they are reported in the OCI section.
By listing the separate gains and losses for each investment (Apple Corp, Chester Inc, and Dooley Ltd), you provide a clearer understanding of how each individual investment performed, rather than simply the overall performance of the investment portfolio.
Learn more about FV-OCI model here:
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