Crane Company Equity Securities: Accounting for Unrealized Gains and Losses

If 2018 is Crane's first year of operation, the amount reported as a charge against income in Crane's 2018 income statement would be $0. This is because the unrealized gain or loss on equity securities is not recognized in the income statement unless the securities are sold. Since Crane still holds the equity securities at the end of the year, the unrealized gain or loss is not realized and therefore not recognized in the income statement.