Question

At January 1, 2008, the marketable securities portfolio held by ABC Corporation consisted of the following investments: 1. 2,500 shares of BBB common stock purchased for $42 per share. 2. 1,500 shares of BCB common stock purchased for $60 per share. At December 31, 2008, the market values per share were: BBB $36 and BCB $66. The fair value adjustment at December 31, 2008 included:

Debit: Marketable Securities, $6,000; Credit: Unrealized Holding Loss on Investment, $6,000

Debit: Unrealized Holding Loss on Investment, $6,000; Credit: Marketable Securities, $6,000

Debit: Unrealized Holding Loss on Investment, $3,500; Credit: Marketable Securities, $3,500

Debit: Marketable Securities, $6,000; Credit: Unrealized Holding Gain on Investment, $6,000

Answer 1

Notes: 1	Calculation of Gain or Loss on BBB Common Stock
	Purchase Value as on January 01, 2018(2,500 Shares X $ 42)	$                 1,05,000
	Book Value as on December 31, 2018 (2,500 Shares X $ 36)	$                    90,000
	Unrealized Loss on Security (A)	$                    15,000
Notes: 2	Calculation of Gain or Loss on BCB Common Stock
	Purchase Value as on January 01, 2018(1,500 Shares X $ 60 )	$                    90,000
	Book Value as on December 31, 2018 (1,500 Shares X $ 66)	$                    99,000
	Unrealized Gain on Security (B)	$                       9,000
	Total of (A+B) unrealized holding loss on investment	Loss of $ 6,000
SOLUTION:
Date	Account Title and explanation	Debit	Credit
Dec 31, 2018	Unrealized Holding loss on Investment	$                       6,000
	Marketable Securities		$                        6,000
Answer = Optin 2 = Debit: Unrealized Holding Loss on Investment, $6,000; Credit: Marketable Securities, $6,000