An Investment in Available-for-Sale Securities are purchased for $400,000 and have a fair value of $420,000 at the end of the year.The required journal entry at year-end will have a credit to:

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The unrealized gain on investment in available-for-sale securities should be credited at year-end. This is because these securities are classified as available-for-sale, which means that they are not held for trading purposes but are intended to be held for a longer period of time. Any changes in the fair value of available-for-sale securities are recognized as unrealized gains or losses in other comprehensive income (OCI), which is a component of stockholders' equity. Therefore, the credit entry should be made to Unrealized Gain on Investment in Available-for-Sale Securities.

An Investment in Available-For-Sale Securities Are Purchased for $400,000 and Have