Question: On December 2 9 , 2 0 2 6 , James Company sold a debt security that had been purchased on January 4 , 2

On December 29,2026, James Company sold a debt security that had been purchased on January 4,2025. James owned no other debt securities. An unrealized holding loss was reported in the 2025 income statement. A realized gain was reported in the 2026 income statement. Was the debt security classified as available-for-sale and did its 2025 market price decline exceed its 2026 market price recovery?
2025 Market Price
Decline Exceeded
2026
Available-for-Sale \(\quad \) Market Price Recovery
Yes
Yes
Yes
No
No
No
No
Yes
On December 2 9 , 2 0 2 6 , James Company sold a

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