When transferring investments between categories, unrealized holding gains for securities transferred from trading to available-for-sale must be

A) realized on the income statement
B) recognized on the income statement
C) realized and reported in comprehensive income
D) recognized and reported in comprehensive income

Unrealized Holding

A gain or loss on investments that has occurred but has not yet been sold or cashed in, hence not yet realized as an income or loss.

Trading To Available-For-Sale

The process of reclassifying a security from being actively traded to being held with the intention not to sell in the near term.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all non-owner changes in equity such as unrealized gains and losses.