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Calculation Of Losses From Securities

Question

In 2012, Trump Co. purchased two securities: one is classified as available-for-sale and the other as trading security. The purchase prices were $10,000 (AFS) and $20,000 (trading), respectively. The fair market value of the two securities were $15,000 (AFS) and $10,000 (trading), respectively. What should Trump report on its 2012 income statement as a result of the increase in fair value of the investments?

a. $0.

b. Unrealized gain of $5,000.

c. Unrealized loss of $10,000.

d. Unrealized loss of $5,000.

 

Summary

The question belongs to Accounting and it discusses about calculation of losses from securities.

Total Word Count 39

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Comments

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