Question

In: Accounting

What amount should Traverse Co. report as unrealized holding loss to be included in 2025 Net Income?

The following data pertains to Traverse Co.’s investments in marketable debt securities:

                                               




Market value


Cost


12/31/24


12/31/25

Trading

$150,000


$155,000


$145,000

Available-for-sale

150,000


130,000


110,000

What amount should Traverse Co. report as unrealized holding loss to be included in 2025 Net Income?

Select one:

a. $20,000

b. $55,000

c. $60,000

d. $10,000

e. $80,000

Solutions

Expert Solution

Unrealized holding gains and losses on trading securities are to be included in net income but not for available for sale securities.

Unrealized holding loss for 2025 = $155,000 - $145,000 = $10,000

The answer is Option d.

ekkarill92 answered 2 years ago
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