XYZ Imports has three securities in its available-for-sale investment portfolio. Information about these securities is as follows:
| Market Value |
| Security |
Cost |
12/31/Year 1 |
12/31/Year 2 |
| NCB |
$ 78,000 |
$ 93,600 |
$ 100,000 |
| TRR |
$ 117,000 |
$ 120,000 |
$ 0 |
| Enson |
$ 58,500 |
$ 53,000 |
$ 50,700 |
TRR was sold in Year 2 for $127,400.
Which of the following statements is correct?
- On its 12/31/Year 2 balance sheet, Deutsch should report the NCB stock at its fair value of $100,000.
- On its 12/31/Year 2 balance sheet, Deutsch should report an unrealized holding gain on the NCB stock of$22,000 in stockholders' equity.
- On its income statement for the year ending December 31, Year 2, Deutsch should report an unrealized holding gain on the NCB stock of $22,000.