Libby Company purchased 10% of the equity securities in another company for $150,000. At the end of the year, the fair value of the securities was $155,000. How should the investment be reported in the year-end financial statements?

Libby Company purchased 10% of the equity securities in another company for $150,000. At the end of the year, the fair value of the securities was $155,000. How should the investment be reported in the year-end financial statements? Multiple Choice The investment in equity securities would be reported in the balance sheet at its $155,000 fair value; an unrealized holding gain of $5,000 would be reported as a separate component of stockholders' equity. O An unrealized holding gain of $5,000 would be reported as a separate component of stockholders' equity. O The investment in equity securities would be reported in the balance sheet at its $150,000 cost. O O The investment in equity securities would be reported in the balance sheet at its $155,000 fair value