On December 29, 2006, BJ Co. sold a marketable equity security that had been purchased on January 4, 2005. BJ owned no other marketable equity security. An unrealized loss was reported in 2005 as other comprehensive income. A realized gain was reported in the 2006 income statement. Was the marketable equity security classified as available-for-sale and did its 2005 market price decline exceed its 2006 market price recovery?
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Available-for-sale |
2005 market price decline exceeded 2006 market recovery |
|
|
a. |
Yes |
Yes |
|
b. |
Yes |
No |
|
c. |
No |
Yes |
|
d. |
No |
No |