yankton company began the year without an investment portfolio. during the year

Question

yankton company began the year without an investment portfolio. during the year they purchased investment classified as trading securities at a cost of 13,000. at the end of the year, the market value of the securities was 11,000. the yukton company's financial statements for the current year should show

BEST ANSWER (Shows references and computations are required) ankton Company began the year without an investment portfolio. During the year they rchased investments classified as trading securities at a cost of $13,000. At the end the year, the market value of the securities was $11,000. The Yankton Company's ancial statements for the current year should show a. a loss of $2,000 on the income statement and net trading securities of $13,000 on no loss on the income statement and net trading securities of $13,000 on the no loss on the income statement, net trading securities of $11,000 and an . a loss of $2,000 on the income statement and temporary investments of $11,000 the balance sheet balance sheet unrealized loss of $2,000 as a stockholders' equity adjustment on the balance she the balance sheet kton Company began the year without an investment portfolio. During the year chased investments classified as available-for-sale securities at a cost of $13 he end of the year, the market value of the securities was $11,000. The Yankt pany's financial statements for the current year should show a loss of $2,000 on the income statement and available-for-sale securities e statement and available-for-sale securities of $13,00 ities of $11,000 a $13,000 on the balance sheet n loss an the incom

Explanation / Answer

Answer is C. no loss on the income statement,net trading securities of $11000 and an unrealized loss of $2000 as a stockholder's equity adjustment on the balance sheet. Option a is wrong since $13000 is not the amount in balance sheet and no loss in income statement Option b is wrong since $13000 is not the amount in balance sheet Option d is wrong since no loss in income statement

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