On May 15,Tumbleweed,Inc.purchased Dansell Corp.bonds for $80,000.The securities are considered available-for-sale securities.This is the company's first and only investment in available-for-sale securities.On September 30,the bonds had a market value of $85,000.The $5,000 difference must be reported on Tumbleweed's income statement as a $5,000 gain.

Question

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The $5,000 difference in the value of available-for-sale securities is reported in other comprehensive income and accumulated in the equity section of the balance sheet, not in the income statement.