Bendi Corp purchased 1,000 shares of Kala Corp at $16/share. The investment represents 5% ownership, and Bendi does not have significant influence. The fair value at the end of the year is $15/share. Assuming no other transactions occurred, where would the $1 difference be recorded?

A. Other Income and (Expense)
B. Other Comprehensive Income
C. Operating income
D. None of the above

Ans: A. Other Income and (Expense)

Business

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What will be an ideal response?

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