If an Available-For-Sale Investment Is Sold for Which There Are

question 107

Multiple Choice

If an available-for-sale investment is sold for which there are unrealized gains in accumulated other comprehensive income (AOCI) ,a reclassification adjustment affects other comprehensive income (OCI) in the period of sale by:

• A)Reducing OCI for the amount of unrealized gains in AOCI.
• B)Increasing OCI for the amount of unrealized gains in AOCI.
• C)No effect on OCI,as OCI only includes the effects of unrealized gains and losses.
• D)No effect on OCI,as the realized gain is included in AOCI.

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