6. Twit Company started operations in January 2010 and purchased equity securities in April for TL140.000. The market value of the investment was TL 121.000 at the end of 2010 and TL155.000 at the end of 2011. Assuming that the portfolio is classified as trading securities, Twit Company will report in its income statement: a. All unrealized gains or losses relating to this portfolio are recognized in the balance sheet. b. A TL 19.000 unrealized loss in 2010 and a TL 34.000 unrealized gain in 2011. c. A TL19.000 unrealized loss in 2010 and a TL 19.000 unrealized gain in 2011. d. No gains or losses of any kind are recognized until the securities are sold. 7. Mase Company started operations in January 2008 and purchased equity securities in April for TL140.000. The market value of the investment was TL121.000 at the end of 2008 and TL155.000 at the end of 2009. Assuming that the portfolio is classified as available for sale securities, Mase Company will report in its income statement: a. All unrealized gains or losses relating to this portfolio are recognized in the balance sheet. b. A TL 19.000 unrealized loss in 2008 and a TL34.000 unrealized gain in 2009. c. A TL19.000 unrealized loss in 2008 and a TL 19.000 unrealized gain in 2009. d. No gains or losses of any kind are recognized until the securities are sold. 8. A trading security is best described as: a. a security which will be exchanged for another security b. a security which is characterized by frequent buying and selling. c. a security which will be hold until maturity date. d. none of the above 9. Bonds with a 6% interest rate were issued when the market rate of interest was 5%. This bond was issued at: a. par value. b. a premium. c. a discount. d. face value. 10. The total interest expense on a ten-year, 6 percent, TL 10.000 bond that is issued at TL 9.500 is a. TL 5.500. b. TL 6.000. c. TL 6.200 d. TL 6.500