At the end of the first year of operations, the total cost of the trading securities portfolio is $240,000. Total fair value is $250,000. The financial statements should show
A) an addition to an asset of $10,000 and a realized gain of $10,000.
B) an addition to an asset of $10,000 and an unrealized gain of $10,000 in the equity section.
C) an addition to an asset of $10,000 in the current assets section and an unrealized gain of $10,000 in "Other income and expense."
D) an addition to an asset of $10,000 in the current assets section and a realized gain of $10,000 in "Other income and expense."
Correct Answer:
Verified
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