An investor in available-for-sale securities has the following information available at December 31,2012: How does the investor report the change in market value on the available-for-sale securities at December 31,2012?
A)unrealized loss of $1,000 on income statement
B)unrealized gain of $1,000 on income statement
C)$1,000 is added to accumulated other comprehensive income account on the balance sheet
D)$1,000 is subtracted from the accumulated other comprehensive income account on the balance sheet

Question

An investor in available-for-sale securities has the following information available at December 31,2012:  How does the investor report the change in market value on the available-for-sale securities at December 31,2012?
A)unrealized loss of $1,000 on income statement 
B)unrealized gain of $1,000 on income statement 
C)$1,000 is added to accumulated other comprehensive income account on the balance sheet 
D)$1,000 is subtracted from the accumulated other comprehensive income account on the balance sheet

Quizplus · Accepted Answer

The Answer is C

An Investor in Available-For-Sale Securities Has the Following Information Available