The economic concept of income would require that an investment in the common stock of another entity be

Question

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The economic concept of income requires that all assets be reported at their fair value on the balance sheet, and any unrealized gains or losses must be reported in earnings. Therefore, an investment in common stock should be reported at fair value on the balance sheet and any unrealized gains or losses should be reported in earnings. Choices A and B are incorrect because they suggest that only realized gains and losses should be reported in earnings, which does not align with the economic concept of income. Choice D is incorrect because unrealized gains and losses should be reported in earnings, not other comprehensive income.

The Economic Concept of Income Would Require That an Investment