The Economic Concept of Income Would Require That an Investment

question 19

Multiple Choice

The economic concept of income would require that an investment in the common stock of another entity be

• A) Reported in the balance sheet at historical cost and that only realized gains and losses be reported in earnings.
• B) Reported in the balance sheet at historical cost and that unrealized gains and losses be reported in earnings.
• C) Reported in the balance sheet at fair value and that unrealized gains and losses be reported in earnings.
• D) Reported in the balance sheet at fair value and that unrealized gains and losses be reported in other comprehensive income.