The financial statements of Baxter Corporation include an Gain on fair value changes in Investments. This item:

Question

Quizplus · Accepted Answer

A gain on fair value changes in investments usually indicates that the market value of securities held by the company has increased since they were purchased. This item is typically included on the income statement as a component of net income. It would not be shown as a reduction in total stockholders' equity unless there were other factors involved. And it does not necessarily indicate that the company sold investments during the period.

The Financial Statements of Baxter Corporation Include an Gain on Fair