If an available-for-sale investment is sold for which there are unrealized holding gains in accumulated other comprehensive income (AOCI) , a reclassification adjustment affects other comprehensive income (OCI) in the period of sale by:
A) Reducing OCI for the amount of unrealized holding gains in AOCI.
B) Increasing OCI for the amount of unrealized holding gains in AOCI.
C) No effect on OCI, as OCI only includes the effects of unrealized holding gains and losses.
D) No effect on OCI, as the realized gain is included in AOCI.
Correct Answer:
Verified
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