Answer (C) is correct . Under U.S.?GAAP, available-for-sale securities are investments in debt securities that are not classified as held-to-maturity or trading securities and in equity securities with readily determinable fair values that are not classified as trading securities. They are measured at fair value in the balance sheet.
Answer (A) is incorrect because Cost is adjusted for changes in fair value.
Answer (B) is incorrect because An equity-based investment is adjusted for the investor’s share of the investee’s earnings, minus dividends received.
Answer (D) is incorrect because The par or stated value is an arbitrary amount.
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