easy · Financial Accounting accounting-cycle-financial-statements
A company holds debt securities classified as 'Available-for-Sale' (AFS). At year-end, the fair value has increased by $5,000 over the carrying cost.
Ignoring taxes, how is this $5,000 increase recorded under ASC 320?
- Credit Unrealized Gain (Net Income)
- Credit Other Comprehensive Income (OCI)
- Credit Retained Earnings directly
- No entry is made until the gain is realized through a sale
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