Smith buys and sells securities. On December 15, 2018, Smith purchased $526,000 of Jones shares and elected

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Question:

Smith buys and sells securities. On December 15, 2018, Smith purchased $526,000 of Jones shares and elected the fair value option to account for the Jones investment. As of December 31, 2018, the Jones shares had a fair value of $585,000. In the 2018 financial statements, Smith will report (ignore taxes):

Multiple Choice

Accumulated other comprehensive income of $585,000.

Investment income of $59,000 in its income statement.

An investment in Jones of $526,000.

Other comprehensive income of $59,000.