Question: Exercise 25: Smith buys and sells equity securities. On December 15, 2021, Smith purchased $500,000 of Jones shares and elected the fair value option to

Exercise 25: Smith buys and sells equity securities. On December 15, 2021, Smith purchased $500,000 of Jones shares and elected the fair value option to account for the Jones investment. As of December 31, 2021, the Jones shares had a fair value of $450,000. In the 2021 financial statements, Smith will report (ignore taxes): a. No gain or loss until investment is sold. b. Other comprehensive loss of $505,000. C. An investment in Jones of $500,000. d. Accumulated other comprehensive income of $450,000. e. Investment loss of $50,000 in its income statement

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