Question:XYZ Company purchases some ABC Company stock for $56,000 on January 1 of Year 1. At December 31 of Year 1, the market value of the ABC stock is $48,000. On July 1 of Year 2, XYZ Company sells all of the ABC stock for $45,000. XYZ Company accounted for the initial investment as a trading security. Given this information, how would XYZ Company report the investment in the ABC stock on its December 31 Year 2 Income Statement?
A As a realized loss on trading security of $11,000
B As an unrealized loss on trading securities of $8,000
C As a realized loss on trading securities of $3,000
D As an unrealized loss on trading securities of $3,000
+ AnswerB
+ Explanation
+ Report
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