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When Accounting for Investments in Trading Securities, Any Decline in Market

Question 37

Multiple Choice

When accounting for investments in trading securities, any decline in market value below cost of the investments is reported in which of the following ways?


A) On the statement of earnings as a realized loss.
B) On the statement of earnings as an unrealized holding loss.
C) On the statement of financial position as a realized loss.
D) On the statement of financial position as an unrealized holding loss in the stockholders' equity section.

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