Asked by
Angela Driskill
on Dec 06, 2024Verified
A realized gain or loss on the sale of an available-for-sale security is determined by comparing
A) the carrying value of the security with the proceeds from the sale
B) the original cost of the security with the proceeds from the sale
C) the market value at the latest balance sheet date with the proceeds from the sale
D) the original cost with the security's carrying value
Realized Gain
The profit earned from the sale of an asset, which has been converted from an unrealized gain into cash or an equivalent.
Available-For-Sale
A classification for securities that are not held to maturity or for trading purposes, with unrealized gains or losses reported in equity.
Carrying Value
The stated value of an asset on a company's balance sheet, minus accumulated depreciation or amortization.
- Evaluate and report fiscal results, benefits, or losses connected to investment assets.
Verified Answer
AK
Learning Objectives
- Evaluate and report fiscal results, benefits, or losses connected to investment assets.