The financial statements of Baxter Corporation include an Unrealized Holding Gain on Investments.This item:
A)Is included in the income statement.
B)Is shown as a reduction in total stockholders' equity.
C)Indicates that Baxter's marketable securities have a current market value higher than cost.
D)Indicate that Baxter Corporation sold marketable securities during the period at a gain.

Question

Quizplus · Accepted Answer

An unrealized holding gain on investments indicates that the current market value of Baxter Corporation's marketable securities is higher than their cost. It is not included in the income statement and is not shown as a reduction in total stockholders' equity. It also does not necessarily indicate that Baxter Corporation sold marketable securities during the period at a gain.

The Financial Statements of Baxter Corporation Include an Unrealized Holding