Changes in fair value of securities are reported on the income statement for what type of securities?

a. Trading securities.

b. Held-to-maturity securities.

c. Available-for-sale securities.

d. Equity method securities.

The following investments held by Watson Company are not reported at fair value on its

balance sheet?

a. Investment in common stock held as available-for-sale securities.

b. Investment in debt securities classified as held-to-maturity securities.

c. Investment in preferred stock held as trading securities.

d. All of the above are reported at fair value.