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During 2019 Lovely Company purchased trading securities with the following cost and market value on December 31,2019 Security Cost Market value A 1,000 shares 200,000 300,000 B 10,000 shares 1,700,000 1,600,000 C 20,000 shares 3,100,000 2,900,000       Total 5,000,000 4,800,000   The entity sold 10,000 shares of security B on January 15,2020 for P150 per share What amount of unrealized gain or loss should be reported in the income statement for 2019? A. 200,000 loss B. 200,000 gain C. 300,000 loss D. 300,000 gain   2. What amount should be reported as loss on sale of trading investment in 2020? A. 200,000 gain B. 200,000 loss C. 100,000 gain D. 100,000 loss

During 2019 Lovely Company purchased trading securities with the following cost and market value on December 31,2019 Security Cost Market value A 1,000 shares 200,000 300,000 B 10,000 shares 1,700,000 1,600,000 C 20,000 shares 3,100,000 2,900,000       Total 5,000,000 4,800,000   The entity sold 10,000 shares of security B on January 15,2020 for P150 per share What amount of unrealized gain or loss should be reported in the income statement for 2019? A. 200,000 loss B. 200,000 gain C. 300,000 loss D. 300,000 gain   2. What amount should be reported as loss on sale of trading investment in 2020? A. 200,000 gain B. 200,000 loss C. 100,000 gain D. 100,000 loss

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During 2019 Lovely Company purchased trading securities with the following cost and market value on December 31,2019

Security

Cost

Market value

A 1,000 shares

200,000

300,000

B 10,000 shares

1,700,000

1,600,000

C 20,000 shares

3,100,000

2,900,000

 

 

 

Total

5,000,000

4,800,000

 

The entity sold 10,000 shares of security B on January 15,2020 for P150 per share

  1. What amount of unrealized gain or loss should be reported in the income statement for 2019?

A. 200,000 loss

B. 200,000 gain

C. 300,000 loss

D. 300,000 gain

 

2. What amount should be reported as loss on sale of trading investment in 2020?

A. 200,000 gain

B. 200,000 loss

C. 100,000 gain

D. 100,000 loss

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