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Bazar Company purchased 5% of the equity securities of another company for $160,000. At the...

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Accounting

Bazar Company purchased 5% of the equity securities of another company for $160,000. At the end of the year, the fair value of the securities was $165,000. How should the investment be reported in Bazar's year-end financial statements? Multiple Choice The investment in equity securities would be reported in the balance sheet at its $160,000 purchase cost; an unrealized holding gain of $5,000 would be reported in net income. The investment in equity securities would be reported in the balance sheet at its $165,000 fair value; an unrealized holding gain of $5,000 would be reported in net income. An unrealized holding gain of $5,000 would be reported as a separate component of stockholders' equity. The investment in equity securities would be reported in the balance sheet at its $160,000 cost

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