Available-for-Sale Securities: These securities are regarded as short-term investments and are sold-off within a year. These are basically struck to pool investments so as to earn returns in the form of dividends and interests in comparatively shorter period of time. The return so generated as result of sale is either termed to be an unrealized gain or loss. Unrealized Gain or Loss: The unrealized gain or loss is the gain or loss that is not actually bore by the holder of security rather it is only a record of transaction that has not been completed. It is regarded as unrealized when at the end of accounting period the entity is left with unsold stock. The reporting of unrealized gains or losses for investments in available-for-sale securities.

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Chapter C, Problem 6DQ

To determine

Available-for-Sale Securities:

These securities are regarded as short-term investments and are sold-off within a year. These are basically struck to pool investments so as to earn returns in the form of dividends and interests in comparatively shorter period of time. The return so generated as result of sale is either termed to be an unrealized gain or loss.

Unrealized Gain or Loss:

The unrealized gain or loss is the gain or loss that is not actually bore by the holder of security rather it is only a record of transaction that has not been completed. It is regarded as unrealized when at the end of accounting period the entity is left with unsold stock.

The reporting of unrealized gains or losses for investments in available-for-sale securities.

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