Question 1: Are Unrealized or realized gain/losses from changes in fair market value for available for sale securities supposed to be reported in the income statement?
Question 2: On its December 31, 2006, balance sheet, Quinn Co. reported its investment in available-for-sale securities, which had cost $600,000, at fair value of $550,000. At December 31, 2007, the fair value of the securities was $585,000. What should Quinn report on its 2007 income statement as a result of the increase in fair value of the investments in 2007?
A) $0.
B) Unrealized loss of $15,000.
C) Realized gain of $35,000.
D) Unrealized gain of $35,000.