A Marketable Security Is Initially Classified as a Trading Security

question 43

Essay

A marketable security is initially classified as a trading security, an available-for-sale security, or a held-to-maturity debt security.Subsequently, a security can be transferred among categories.
Required:
Explain the accounting for a related unrealized holding gain or loss when a transfer to another category occurs.

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Definitions:

Priming Pheromones

Chemical signals released by organisms to trigger a long-term behavioral or developmental response in other members of the same species.

Chemical Signals

Molecules released by organisms that influence the behavior or physiology of other organisms.

Long-Term Responses

Adaptations or reactions of an organism or system that occur or are implemented over an extended period.

Altruism

Behavior that benefits others at the expense of the individual performing it.