Each of the three categories of investments in debt and equity securities has similar accounting for all of the following transactions except

A) initial recording of cost
B) recognition of dividend and interest income
C) recognition of realized gains or losses on sales
D) recognition of unrealized holding gains and losses

The recognition of unrealized holding gains and losses differs among the three categories of investments in debt and equity securities (trading, available-for-sale, and held-to-maturity). For trading securities, unrealized gains and losses are recognized in earnings. For available-for-sale securities, they are recognized in other comprehensive income (OCI) until realized. Held-to-maturity securities do not recognize unrealized gains and losses in earnings or OCI because they are measured at amortized cost.