Acompany failed to record unrealized gains of $26 million on its debt investments classified as trading securities. its tax rate is 35%. as a result of this error, total shareholders' equity would be (round million answer to 2 decimal places.):

Total shareholders' equity = $16.90 million

Explanation:

Unrealized gains or losses of  trading securities investment will be recorded in retained earnings.

Unrealized gains (net of taxes) will increase the balance of retained earnings, which is a part of shareholders' equity. If unrealized gains are not recorded then the retained earnings is understated.

Unrealized gains (net of taxes) = Unrealized gains - Taxes

= $26 million - 35% of $26 million

= $26 million - $9.10 million

= $16.90 million

answer; /// the above statement is (true); good luck