The sale of a stock from the available-for-sale portfolio creates a gain or loss on the statement of earnings based on the difference between the stock's original cost and its selling price.

Question

Quizplus · Accepted Answer

This statement is true. When a stock is sold from the available-for-sale portfolio, any gain or loss is calculated based on the difference between its original cost and the selling price, and this is reflected on the statement of earnings.

The Sale of a Stock from the Available-For-Sale Portfolio Creates