The Following Is from the Financial Statement Footnotes from Chelsea

Essay

The following is from the financial statement footnotes from Chelsea Retailers:
As of December 31, 2019, the Company's marketable securities approximated the fair market values of the securities and the unrealized gains and losses on these securities were not significant. As of December 1, 2019, the Company had recorded an unrealized gain of approximately $2.3 million in comprehensive loss on its investment in a certain private company. In fiscal 2020 the Company sold this investment in its entirety and realized a gain on the sale of $2.9 million.
Required
a. How did Chelsea classify these marketable securities? How do you know?
b. How did the unrealized gain of $2.3 million affect Chelsea's 2019 net income?