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Ronald Company purchased 5% of the equity securities of another company for $110,000. At the end of the year, the fair value of the securities

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Ronald Company purchased 5% of the equity securities of another company for $110,000. At the end of the year, the fair value of the securities was $115,000. How should the investment be reported in the year end financial statements? Multiple Choice 0 An unrealed holding gain of $5,000 would be reported as a separate component of stockholders' equity The investment in equity securities would be reported in the balance sheet at its $110.000 cost. 0 O The investment in equity securities would be reported in the balance sheet at its $115.000 fair value an unrealized holding gain of $5,000 would be reported in net income. 0 The investment ineguty securities would be reported in the balance sheet at its $10,000 purchase costante ed holding gainer 55.000 would be reported in net income 0

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