Question
Amazon purchased equity securities for $100,000 and classified them as trading securities on September 15, 2019. At December 31, 2019, the market value of the
Amazon purchased equity securities for $100,000 and classified them as trading securities on September 15, 2019. At December 31, 2019, the market value of the securities was $105,000. How should the investment be reported in the financial statements? The investment in short-term trading securities would be reported on the balance sheet at its $100,000 cost. The $5,000 unrealized gain is reported within the income statement. The $5,000 realized gain is reported within the income statement. The investment in available for sale securities would be reported in the balance sheet at $105,000 but nothing will be reported on the income statement
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