Following Is a Portion of the Investments Footnote from Athletic

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The Answer is A. Available-for-sale securities are reported at fair value on the balance sheet. Thus, Athletic Supply's available-for-sale investments are reported at: $402,392 million as of 2016 and $225,172 million as of 2015.
B. Like available-for-sale securities, trading securities are reported at fair value on the balance sheet. Unlike available-for-sale securities, the unrealized gains or losses on trading securities would be reported in the income statement.
C. Net unrealized gains for 2016 are $24,794 million ($33,440 million gains - $8,646 million losses).
Net unrealized losses for 2015 are $(19,830) million ($72 million - $19,902 million).
These unrealized losses correspond to the available-for-sale portfolio so they bypass the income statement and are reported directly in the balance sheet.
D. Unrealized gains and losses occur when the stock increases or decreases in value after the investor buys the stock (i.e. "paper profits"). Realized gains and losses occur when the investor sells the stock. For available-for-sales securities, unrealized gains and losses flow through other comprehensive income in the equity section of the balance sheet (i.e. no income statement effects). When available-for-sale securities are sold (assuming there is a gain), other comprehensive income is reduced and a gain is realized in the income statement.

Following Is a Portion of the Investments Footnote from Athletic

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Following Is a Portion of the Investments Footnote from Athletic

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Correct Answer:
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