All of the Following Statements Regarding Accounting for Trading Debt

Multiple Choice

All of the following statements regarding accounting for trading debt securities under U.S.GAAP are true except:

A) The entire portfolio of trading securities is reported at fair value.
B) An unrealized gain or loss from a change in fair value is reported in the income statement.
C) A realized gain or loss is recorded when the securities are sold and reported in the income statement.
D) When the period-end fair value adjustment for the portfolio of trading securities is computed,it includes the cost and fair value of any securities sold.
E) Any prior period fair value adjustment to the portfolio is not used to compute the gain or loss from sale of individual transactions.