On its December 31, 2017 balance sheet, Holly Corp.reported a short-term investment in equity securities, under the fair value through net income model, at $660,000.At December 31, 2018, the fair value of the securities was $700,000.What should Holly report on its 2018 income statement as a result of the increase in fair value of the investments during 2018?
A) $0.
B) loss on investments of $40,000.
C) unrealized gain of $40,000.
D) investment income of $40,000.
Correct Answer:
Verified
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