See the Preface of the book for details. MULTIPLE CHOICE QUESTIONS 1-4 On January 1, 2016, a company's balance sheet reports its investments in financial instruments as follows: $160,000 100,000 Use the following information to answer questions I 207,544 Investment in HTM securities. $ 4,000 Unrealized gains (osses) on AFS securities a. The HTM securities are $200,000face value debt securities purchased on January 1,.2014, at a yield of on January 1,2014, at a yield of 4.The securities have a 4-year total life and pay interest annually on December 31, at a coupon rate of 6% b. The trading securities on hand on January I were sold in 2016 for $180,000. c. More trading securities were purchased for $100,000. They are still on hand at December 31, 2016, and have a fair value of $125,000 d. AFS securities, originally purchased for $26,000 with a carrying value of $25 ,000 as of January 1,2016, were sold for $29.000. e. AFS securities on hand at December 31,2016, have a fair value of $81,000. OLo1 (1.) The total gain on trading securities reported on the 2016 income statement is a. $20,000 b. $25,000 c. $45,000 d. $60,000 LO1 (2 The gain on AFS securities reported on the 2016 income statement is a. $ 3,000 b. $ 4,000 c. $ 9,000 d. $10,000