Investment Appraisal

Chang Company purchased several investments in December 2015. Costs and market values of those investments on December 31, 2015, are presented below:

Cost Market Value

XYZ stock $200,000 $180,000

ABC stock 400,000 420,000

DEF stock 600,000 540,000

Assuming all of the securities are classified as available-for-sale, the journal entry required on December 31, 2015, the end of Chang’s fiscal year, would include a

a. debit to Unrealized Holding Gain/Loss-Available-for-Sale of $60,000

b. credit to Unrealized Holding Gain/Loss-Available-for-Sale of $60,000

c. credit to Unrealized Holding Gain/Loss-Available-for-Sale of $80,000

d. debit to Investment in Available-for-Sale Securities of $60,000