Stocks categorized as trading securities are purchased for $55,000 during Year 1. The company only closes its books once a year, on 12/31. On December 31st of Year 1 the market value of the stock is $67,000. _______________________________________________________________ What is the Income Statement impact of these trading securities in the December 31st Year 1 Income Statement?
Stocks categorized as trading securities are purchased for $55,000 during Year 1. The company only closes its books once a year, on 12/31. On December 31st of Year 1 the market value of the stock is $67,000.
_______________________________________________________________
What is the Income Statement impact of these trading securities in the December 31st Year 1 Income Statement?
options:
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a
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There is no impact of these trading securities on the company's Year 1 December 31st Income Statement, |
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b
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The unrealized loss of $12,000 is recognized on the Income Statement, decreasing current period income by $12,000. |
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c
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The unrealized gain of $67,000 is recognized on the Income Statement, increasing current period income by $67,000. |
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d
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The unrealized gain of $12,000 is recognized on the Income Statement, increasing current period income by $12,000. |
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