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The Fair Value Adjustment for Available-For-Sale Securities

Question 107

Multiple Choice

The fair value adjustment for available-for-sale securities


A) is reported as an increase to net income when the fair value of investments is greater than cost.
B) is prohibited because these securities must be reported at cost.
C) is reported as a separate component of equity on the statement of financial position.
D) is only allowed when the fair value of investments is less than cost.

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