If the combined market value of equity securities (low influence--below 20% ownership) at the end of...

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If the combined market value of equity securities (low influence--below 20% ownership) at the end of the year is less than the market value of the same portfolio of securities at the beginning of the year, the difference should be accounted for by: 1) reporting an unrealized loss in security investments in the stockholders' equity Section of the balance sheet. O2) reporting an unrealized loss in security investments in the income statement. 3) reporting a footnote to the financial statements. 4) a credit to Investment in Trading Securities. If the combined market value of equity securities (low influence--below 20% ownership) at the end of the year is less than the market value of the same portfolio of securities at the beginning of the year, the difference should be accounted for by: 1) reporting an unrealized loss in security investments in the stockholders' equity Section of the balance sheet. O2) reporting an unrealized loss in security investments in the income statement. 3) reporting a footnote to the financial statements. 4) a credit to Investment in Trading Securities.

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The detailed answer for the above question is provided below The correct answer is 2 reporting an unrealized loss in security investments in the incom... View the full answer