Markot Corporation purchased $400,000 of securities and classified them as available-for-sale.The market value of the securities went up to $475,000.Markot Corporation should ________.
A)show these securities on its balance sheet at their market value
B)report a holding gain on its income statement
C)report a holding loss on its income statement
D)report an unrealized gain on its income statement

Question

Quizplus · Accepted Answer

Available-for-sale securities are reported on the balance sheet at their fair market value. Unrealized gains or losses are not reported on the income statement but rather in other comprehensive income, a component of shareholders' equity.

Markot Corporation Purchased $400,000 of Securities and Classified Them as Available-For-Sale.The