medium · Financial Accounting accounting-cycle-financial-statements
A firm has $50,000 of available-for-sale (AFS) debt securities. At year-end, the market value has risen to $52,000.
How is this $2,000 gain reported?
- As a component of Other Comprehensive Income (OCI)
- As an increase to Retained Earnings directly
- It is not reported until the security is sold
- As Other Income in the Income Statement
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