When shares of stock held as an investment are sold, the difference between the proceeds and the carrying amount of the investment is recorded as a (n)

A) prior period adjustment
B) operating income and loss
C) paid-in capital addition
D) gain or loss

Question

Vaniesia Karcho · Accepted Answer

Final Answer : D, Explanation :  The difference between the proceeds (selling price) and the carrying amount (book value) of an investment is known as a gain or loss. This is because it represents either a profit or a loss on the sale of an investment. Therefore, choice D is the correct answer. The other options (A, B, and C) do not accurately describe this transaction.

When shares of stock held as an investment are sold, the difference between the proceeds and the carrying amount of the investment is recorded as a (n)

A) prior period adjustment
B) operating income and loss
C) paid-in capital addition
D) gain or loss

Definitions

Learning Objectives

Learning Objectives

Related questions

When shares of stock held as an investment are sold, the difference between the proceeds and the carrying amount of the investment is recorded as a (n) A) prior period adjustmentB) operating income and lossC) paid-in capital additionD) gain or loss

Definitions

Learning Objectives

Learning Objectives

Related questions

When shares of stock held as an investment are sold, the difference between the proceeds and the carrying amount of the investment is recorded as a (n)

A) prior period adjustment
B) operating income and loss
C) paid-in capital addition
D) gain or loss