Question
On January 1, Butte Companys Valuation Allowance for Trading Investments account has a debit balance of $23,200. On December 31, the cost of the trading
On January 1, Butte Companys Valuation Allowance for Trading Investments account has a debit balance of $23,200. On December 31, the cost of the trading securities portfolio was $80,000. The fair value was $98,000. Which of the following would Butte report on the income statement for the current year?
A. an unrealized loss on trading investments, $5,200
B. an unrealized gain on trading investments, $5,200
C. an unrealized gain on trading investments, $18,000
D. an unrealized loss on trading investments, $18,000
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Custom Edition For University Of Central Florida From Managerial Accounting
Authors: Karen Wilken Braun, Wendy Tietz
3rd Edition
1269451839, 978-1269451833
