Credit Company
Information Concerning Credit Company's Portfolio of Debt Securities

Credit Company
Information concerning Credit Company's portfolio of debt securities at May 31, Year 6, and May 31, Year 7, is presented below.All of the debt securities were purchased by Credit Co.during June, Year 5.Prior to June, Year 5, Credit Co.had no investments in debt or equity securities.
$\begin{array}{llc}\text { As of May } 31, \text { Year } 6 & \text { Amortized Cost } &\text { Fair Value }\\\hline\text { CZ Company bonds } & \$ 164,526 & \$ 168,300 \\\text { Jerry Industry bonds } & 204,964 & 205,200 \\\text { Barley Inc. bonds } & 305,785 & 285,200 \\\hline&\$675,275&\$658,700\\\\\text { As of May } 31, \text { Year } 7 & \text { Amortized Cost } &\text { Fair Value }\\\hline\text { CZ Company bonds } & \$ 152,565 & \$ 147,600 \\\text { Jerry Industry bonds } & 193,800 & 204,500 \\\text { Barlev Inc. bonds } & 289,130 & 291,400\\&\$635,495&\$643,500\end{array}$
a. Assuming that the above securities are properly classified as available-for-sale securities under U.S.GAAP, how would the unrealized holding gain or loss as of May 31, Year 7, be recognized?
b. Assuming that the above securities are properly classified as held-to-maturity securities under U.S.GAAP, how, if at all, would the unrealized holding gain or loss as of May 31, Year 7, be recognized?