Paula Company measures its investments in available-for-sale marketable securities
A) at cost on the balance sheet and recognizes income only when it receives a dividend (revenue) or sells some of the securities at a gain or loss.
B) at fair value on the income statement and recognizes income when it receives a dividend (revenue) .
C) at cost on the balance sheet and recognizes income only when it receives a dividend (revenue) .
D) at fair value on the balance sheet and recognizes income only when it receives a dividend (revenue) or sells some of the securities at a gain or loss.
E) at cost on the balance sheet and recognizes income only when it sells some of the securities at a gain or loss.
Correct Answer:
Verified
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