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Lyrical Company purchased equity securities for $500,000 and classified them as trading securities on September 15, 2010. On December 31, 2010, the current market value

Lyrical Company purchased equity securities for $500,000 and classified them as trading securities on September 15, 2010. On December 31, 2010, the current market value of the securities was $481,000. How should the investment be reported within the 2010 financial statements? The investment in trading securities would be reported in the balance sheet at its $500,000 cost. A realized loss on the trading securities would be reported on the income statement. The investment in trading securities would be reported in the balance sheet at its $481,000 market value and a realized loss on the trading securities would be reported on the income statement. The investment in trading securities would be reported in the balance sheet at its $481,000 market value

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