Asked by Kennedy McCarthy on Jun 17, 2024
Verified
An unrealized holding gain is reported within other comprehensive income when the fair value of a trading debt security exceeds its fair value reported in the prior period.
Other Comprehensive Income
This includes revenues, expenses, gains, and losses that are excluded from net income on the income statement.
- Recognize the accounting treatment of unrealized holding gains and losses for various investment categories.
Verified Answer
KF
Kayla FitzpatrickJun 24, 2024
Final Answer :
False
Explanation :
An unrealized holding gain on a trading security is reported in net income, not in other comprehensive income. Other comprehensive income records unrealized gains and losses on available-for-sale securities, not trading securities.
Learning Objectives
- Recognize the accounting treatment of unrealized holding gains and losses for various investment categories.
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