When a Debt Security Is Appropriately Carried and Reported as Securities

Multiple Choice

When a debt security is appropriately carried and reported as securities available for sale, a gain should be reported in the income statement:

A) When the fair value of the security increases.
B) When the present value of the security increases.
C) Only when the Dow Jones Industrial Average increases at least 100 points.
D) Only when the security is sold.