7. You purchased McDonald's stock as an available-for-sale investment. You purchased it at $63 per share on January 25, 2015. It is currently selling at $83 per share on December 31, 2015. You purchased 1,000 shares for your company and paid a brokerage fee of $500. The adjusting entry at December 31, 2015 for the McDonalds' stock investment:
a. There is no year-end adjusting entry for investments in available-for-sale stocks.
b. Includes a debit to Fair Value Adjustment of $19,500
c. Includes a credit to Unrealized Gain - Income of $19,500
d. Includes a debit to Stock Investments of $20,000