Unrealized gains and losses on investments in trading securities are reported

A) as a current asset
B) on the income statement
C) on the balance sheet as part of stockholders' equity
D) as a contra asset

Unrealized gains and losses on investments in trading securities are reported on the income statement, typically under the heading "Other Income" or "Other Comprehensive Income." This is because trading securities are bought and sold frequently with the intention of profiting from short-term price changes, so gains and losses are considered part of the company's operating activities and therefore reported on the income statement.