9. On August 20, 2018, Macak, Co. decides to invest excess cash of $ 3 comma 000 by purchasing Buffalo, Inc. bonds. At year-end, December 31, 2018, the market price of the bonds was $ 2 comma 400. The investment is categorized as available-for-sale debt. Journalize the adjusting entry needed at December 31, 2018.

On Dec. 31 2018    

Unrealized holding loss on AFSI ($3000 - $2400)600  

               Fair value adjustment - AFSI  600

(To record available-for-sale investments at fair value)

In this, the adjusting entry should be recorded.

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Please refer to explanation.

Explanation:

Since it is an Available for Sale debt, we journalize it as follows

2018    

Dec. 31

DR Unrealized holding loss on AFS  600  

CR                 .Fair value adjustment - AFSI  600

(To record available-for-sale investments at fair value)  

Calculation,

= Cost Price - Market Price

=($3000 - $2400)

= $600

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hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )