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Fsa 28 the fair value adjustment account can only

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FSA28.The Fair Value Adjustment account can only have a credit balance or a zero balance.ReportingH-7
29.Unrealized gains and losses are recognized on trading securities.Reporting
30.Trading securities are valued on the balance sheet at market value.Reporting
31.Unrealized gains and losses on available-for-sale securities are reported on the incomestatement.Reporting
32.The valuation of available-for-sale securities is similar to the procedures followed fortrading securities, except that changes in fair value are not recognized in current income.
FSAFOR INSTRUCTOR USE ONLY
Test Bank for Financial Accounting: Tools for Business Decision Making, Eighth Edition33.An unrealized gain or loss on trading securities is reported as a separate component ofstockholders' equity.Reporting
34.For available-for-sale securities, the unrealized gain or loss account is carried forward tofuture periods.Reporting
35.The account Fair Value Adjustment-Trading appears as a contra account in the incomestatement.

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