easy · Financial Accounting accounting-cycle-financial-statements

A company holds an investment in bonds classified as 'Available-for-Sale' (AFS). A $10,000 unrealized gain occurs due to market rate changes.

Where is this gain reported under ASC 320?

  1. As a reduction of Interest Expense
  2. In Other Comprehensive Income (OCI)
  3. Directly in Net Income on the Income Statement
  4. In Retained Earnings directly

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