Markot Corporation purchased $400,000 of securities and classified them as available-for-sale.The market value of the securities went down to $375,000.Markot Corporation should ________.
A)show these securities on its balance sheet at their market value
B)report a holding gain on its income statement
C)report a holding loss on its income statement
D)report an unrealized loss on its income statement

Question

Quizplus · Accepted Answer

Available-for-sale securities are reported on the balance sheet at their fair market value. Unrealized gains and losses are not reported on the income statement but in other comprehensive income.

Markot Corporation Purchased $400,000 of Securities and Classified Them as Available-For-Sale.The