An unrealized holding gain is reported on the income statement when the fair value of an available-for-sale security exceeds its fair value reported in the prior period.

Name: An unrealized holding gain is reported on the income statement when the fair value of an available-for-sale security exceeds its fair value reported in the prior period.
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Question

Quizplus · Accepted Answer

Unrealized holding gains for available-for-sale securities are reported in other comprehensive income, not on the income statement.

An Unrealized Holding Gain Is Reported on the Income Statement