On Its December 31, 2020, Balance Sheet, Red Corp

question 62

Multiple Choice

On its December 31, 2020, balance sheet, Red Corp. reported a short-term investment in equity securities, under the fair value through net income model, at $ 330,000. At December 31, 2021, the fair value of the securities was $ 350,000. What should Red report on its 2021 income statement as a result of the increase in fair value of the investments during 2021?

• A) $ 0.
• B) loss on investments of $ 20,000.
• C) unrealized gain of $ 20,000.
• D) investment income of $ 20,000.

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