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What Is An Example Of An Unrealized Gain? |
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Answer» A COMMON example of an unrealized GAIN is the gain in the MARKET value of an investment in the STOCK of another corporation that is held as an available-for-sale security. The unrealized holding gain is reported on the balance sheet by 1) increasing the asset available-for-sale securities, and 2) increasing the stockholders' equity component accumulated other comprehensive income. Note that the holding gains on available-for-sale securities are not reported on the income statement. A common example of an unrealized gain is the gain in the market value of an investment in the stock of another corporation that is held as an available-for-sale security. The unrealized holding gain is reported on the balance sheet by 1) increasing the asset available-for-sale securities, and 2) increasing the stockholders' equity component accumulated other comprehensive income. Note that the holding gains on available-for-sale securities are not reported on the income statement. |
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