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?
b. Unrealized gain of $5,000.
c. Unrealized loss of $10,000.
d. Unrealized loss of $5,000.
The question belongs to Accounting and it discusses about calculation of losses from securities.
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