When Investments Are Treated as Available-For-Sale,other Comprehensive Income (OCI)also Includes

question 89

Multiple Choice

When investments are treated as available-for-sale,other comprehensive income (OCI) also includes the tax effects associated with unrealized holding gains and losses.As a result:

• A)Accumulated other comprehensive income would be increased by the tax benefits typically associated with unrealized holding gains.
• B)Other comprehensive income typically would be reduced by the tax expense associated with unrealized holding gains.
• C)Accumulated other comprehensive income would not be affected by taxes.
• D)None of these answer choices is correct.

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Definitions:

Promissory Note

A financial document in which one party promises to pay another party a specified sum of money at a defined future point in time or on demand.

Honors a Note

This refers to the action of fulfilling the obligations outlined in a promissory note, typically by repaying the principal and interest by the due date.