(CMA Adapted, Jun 97 #12) Refer to the Manley Company

(CMA adapted, Jun 97 #12) Refer to the Manley Company example.Assuming that the above securities are properly classified as held-to-maturity securities under U.S.GAAP, the unrealized holding gain or loss as of May 31, Year 7, would

A) be recognized as a $8,005 unrealized holding gain on the income statement.
B) be recognized as other comprehensive income with a year-end credit balance of $8,005 in the Unrealized Holding Gain/Loss account.
C) be recognized as a $24,580 unrealized holding loss on the income statement.
D) be recognized as a $24,580 unrealized holding loss in retained earnings.
E) not be recognized.