16 . If the cost of an available - for - sale security exceeds its fair value by $40 000 , the entry to recognize the loss a . is not required since the share prices will likely rebound in the long run b . will show a debit to an expense account . C . will show a credit to a contra - asset account that appears in the stockholder's equity section of the balance sheet d . will show a debit to an unrealized loss account that is deducted in the stockholders equity section of the balance sheet 17 . Short - term investments are securities that are readily marketable and intended to be converted into cash within the next a . year b . two years C . year or operating cycle , whichever is shorter a year or operating cycle , whichever is longer