1_Hobson Company bought the securities listed below during 2020. These securities were classified as trading securities. In its December 31, 2020, income statement Hobson reported a net unrealized holding loss of $13,000 on these securities. Pertinent data at the end of June 2021 is as follows:

SecurityCostFair ValueX$380,000 $352,000 Y 180,000 160,000 Z 420,000 414,000

What amount of unrealized holding loss on these securities should Hobson include in its income statement for the six months ended June 30, 2021?

Multiple Choice

$41,000.

$54,000.

$13,000.

$0.

4333_KLR Corporation purchased $100,000 of Hales Inc. 6% bonds at par in 2020 and reported the bonds at amortized cost. Unfortunately, a combination of problems at Hales and in the debt market caused the fair value of the Hales investment to decline to $70,000 during 2021. KLR does not believe it is more likely than not that it will have to sell the investment before its fair value recovers. When KLR applies the ECL model to account for its investment in 2021, KLR concludes that the credit risk on the investment has not increased significantly and calculates that, of the $30,000 drop in fair value, $10,000 of it relates to 12-month credit losses, $25,000 to lifetime credit losses (including the 12-month credit losses), and $5,000 to other factors. KLR has not elected to always recognize lifetime credit losses. KLRs accounting for this impairment will reduce before-tax net income for 2021 by:

Multiple Choice

$0.

$10,000.

$20,000.

$25,000.