At the End of the First Year of Operations, the Total

question 25

Multiple Choice

At the end of the first year of operations, the total cost of the trading securities portfolio is $240,000. Total fair value is $250,000. The financial statements should show

• A) an addition to an asset of $10,000 and a realized gain of $10,000.
• B) an addition to an asset of $10,000 and an unrealized gain of $10,000 in the equity section.
• C) an addition to an asset of $10,000 in the current assets section and an unrealized gain of $10,000 in "Other income and expense."
• D) an addition to an asset of $10,000 in the current assets section and a realized gain of $10,000 in "Other income and expense."

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Definitions:

Ego Identity

A sense of oneself as a distinct, continuous entity with a set of beliefs, abilities, and needs.

Attraction-Similarity Hypothesis

A theory suggesting that people tend to be attracted to others who are similar to themselves in terms of attitudes, values, and beliefs.

Romantic Relationships

Interpersonal relationships characterized by emotional and physical intimacy, typically involving partners who consider each other as significant others.

Reproductive Advantages

Biological or behavioral attributes that increase the likelihood of an individual's genes being passed on to successive generations.