TB MC Qu. D-26 Ronald Company purchased 5% of the equity... Ronald Company purchased 5% of the equity securities of another company for $170,000. At the end of the year, the fair value of the securities was $175,000. How should the investment be reported in the year-end financial statements? o An unrealized holding gain of $5,000 would component of stockholders' equity. chase cost on 3 ot5714 o The investment in equity securities would be reported in the balance sheet at its $170.000 purchase cost an unrealized holding gain of $5,000 would be reported in net income. o ) The investment in equity securities would be reported in the balance sheet at its $170,000 cost. o The investment in equity securities would be reported in the balance sheet at its $175,000 fair value, an unrealized holding gain of $5,000 would be reported in net income