Required information [The following information applies to the questions displayed below] Franklin, Inc., accumulates large amounts of excess cash throughout the year. It typically invests these funds in marketable securities, both short term and long term. The company's most recent financial statements revealed a net unrealized loss on marketable securities of $100,000. Footnotes to the financial statements disclosed that Franklin, Inc., reports its marketable securities at fair value. a. Which of the following are true about the net unrealized loss on marketable securities? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) This loss has been finalized through an actual sale of the investments. Its amount will remain constant irrespective of market fluctuations. It is the amount of loss that would be realized if the investments were sold today. It is the difference between the cost of these investments and their current market values. 7 Its amount will change as market values fluctuate. ? This loss has not been finalized through an actual sale of the investments. Required information [The following information applies to the questions displayed below.] Franklin, Inc., accumulates large amounts of excess cash throughout the year. It typically invests these funds in marketable securities, both short term and long term. The company's most recent financial statements revealed a net unrealized loss on marketable securities of $100,000. Footnotes to the financial statements disclosed that Franklin, Inc., reports its marketable securities at fair value. b. How does the net unrealized loss impact the company's financial statements? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) It appears in an account in Franklin's income statement. It increases the asset amount. It decreases the asset amount. The recognition of this loss does not involve any cash flow The recognition of this loss involves cash flow. Mumford Corporation invested $30,000 in marketable securities at various times during the year. On December 9, it sold some of these investments for $10,000, and on December 18, it sold more of these investments for $5,000. The securities sold on December 9 had cost the company $7,000, whereas the securities sold on December 18 had cost the company $6,000 a. Record the purchase of marketable securities during the year. b. Record the sale of marketable securities on December 9. c. Record the sale of marketable securities on December 18. d. Record the necessary fair value adjustment on December 31, assuming that the market value of the company's remaining unsold securities was $20,000. Complete this question by entering your answers in the table below. Required A Required B Required C Required D Record the purchase of marketable securities during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of marketable securities