Under the Fair Value Through Other Comprehensive Income Method, Unrealized

question 94

Multiple Choice

Under the fair value through other comprehensive income method, unrealized gains and losses:

• A)are recognized in the operating income.
• B)are accumulated in other comprehensive income.
• C)are recognized in net income.
• D)are charged directly to retained earnings.

---

Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life, expected to be recovered upon disposal.

Variable Manufacturing Costs

Costs that vary directly with the level of production, such as raw materials and labor expenses.

Variable Manufacturing Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor.