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.
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