value of $618000. At December 31, 2025, the fair value of the securities was $649000. What should Sandhill income statement as a result of the increase in fair value of the investments in 2025? O Realized gain of $31000 O Unrealized gain of $31000 O Unrealized loss of $41000 O $0

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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On its December 31, 2024, balance sheet, Sandhill Company reported its investment in equity securities, which cost $690000, at fair
value of $618000. At December 31, 2025, the fair value of the securities was $649000. What should Sandhill report on its 2025
income statement as a result of the increase in fair value of the investments in 2025?
O Realized gain of $31000
O Unrealized gain of $31000
O Unrealized loss of $41000
O $0
Transcribed Image Text:On its December 31, 2024, balance sheet, Sandhill Company reported its investment in equity securities, which cost $690000, at fair value of $618000. At December 31, 2025, the fair value of the securities was $649000. What should Sandhill report on its 2025 income statement as a result of the increase in fair value of the investments in 2025? O Realized gain of $31000 O Unrealized gain of $31000 O Unrealized loss of $41000 O $0
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