Grand Prairie Company had an unrealized gain on their available-for-sale assets from changes in the market price of the securities.This gain was not included in their net income for the year.Where would it be included in the shareholders' equity section?

Question

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Unrealized gains or losses on available-for-sale securities are typically included in accumulated comprehensive income in the shareholders' equity section. This allows investors and analysts to see the impact of these changes on the company's overall financial position, without distorting net income figures. Retained earnings are typically used to record realized gains or losses, while contributed surplus is a separate account used to record contributions from shareholders in excess of par value.

Grand Prairie Company Had an Unrealized Gain on Their Available-For-Sale