if-the-market-value-of-an-afs-security-increases-from-20000-to-25000-what-is-the

Question

If the market value of an AFS security increases from $20,000 to $25,000, what is the journal entry for the unrealized gain?

Accepted Answer

Debit Investment in AFS Securities $5,000; Credit Unrealized Gain on AFS Securities $5,000

Answer

Debit Unrealized Gain on AFS Securities $5,000; Credit Investment in AFS Securities $5,000

Answer

Debit Cash $5,000; Credit Investment in AFS Securities $5,000

Answer

Debit Investment in AFS Securities $25,000; Credit Unrealized Gain on AFS Securities $25,000

If the market value of an AFS security increases from \$20,000 to \$25,000, what is the journal entry for the unrealized gain?