Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from the investment. It occurs when shares prices increase after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of increase in share price is recorded as an unrealized gain. An unrealized loss is a loss recorded on paper results from the investment. It occurs when shares prices decrease after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of decrease in share price is recorded as an unrealized loss. Hedge: Hedge is an investment to reduce the risk arising out of the changes in the price movements of the assets. Fair value hedge: Fair value hedge eliminates the risk of changes or volatility in fair value of recognized asset or a liability or an firm’s commitment which affects the profit or loss. To determine the situation under which unrealized holding gain or loss on inventory reported in income.

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Chapter 17, Problem 31Q

To determine

Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from the investment. It occurs when shares prices increase after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of increase in share price is recorded as an unrealized gain.

An unrealized loss is a loss recorded on paper results from the investment. It occurs when shares prices decrease after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of decrease in share price is recorded as an unrealized loss.

Hedge: Hedge is an investment to reduce the risk arising out of the changes in the price movements of the assets.

Fair value hedge: Fair value hedge eliminates the risk of changes or volatility in fair value of recognized asset or a liability or an firm’s commitment which affects the profit or loss.

To determine the situation under which unrealized holding gain or loss on inventory reported in income.

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