Question:XYZ Company has three securities in its portfolio available for sale, as follows:

Security 1: Beatty, Cost: $78,000, 12/31/06 Market Value: $93,600, 12/31/07 Market Value:$100,100
Security 2: Cole, CoSt: $117,000, 12/31/06 Market Value: $120,900, 12/31/07 Market Value:$0
Security 3: Sells, Cost: $58,500, 12/31/06 Market Value: $53,500, 12/31/07 Market Value:$50,700

The Cole stock was sold in Year 2 for $127,400.

Given the above information, what would XYZ Company report on its income Statement for the year ending 12/31 Year 2 relative to the sale of the Cole stock in Year 2? 

A A realized gain of $6,500 
B A realized gain of $6,500 and an unrealized gain of $3,900 
C A realized gain of $10,400 
D An unrealized gain of $10,400 

+ Answer
A 

+ Explanation
Answer not sure

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Md. Habib Ullah

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