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Passive Investments in Equity Securities

Question 11

Multiple Choice

Passive investments in equity securities


A) are reported on the balance sheet at original cost.
B) may have unrealized price increases or decreases, which affect shareholders' equity but not the income statement.
C) are reported in the shareholders' equity section of the balance sheet at fair value.
D) may have unrealized gains or losses on the income statement associated with price increases or decreases.

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