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    Hobson Company

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    Hobson Company bought the securities listed below during 2005. These securities were classified as trading securities. On its December 31, 2005, income statement Hobson reported a net unrealized loss of $13,000 on these securities. Pertinent data at the end of December 2006 are as follows:

    Security Cost Fair Value
    X 380,000 352,000
    Y 180,000 160,000
    Z 420,000 414,000

    What amount of loss on these securities should Hobson include in its income statement for the year ended December 31, 2006?

    A. $41,000.
    B. $54,000.
    C. $13,000.
    D. $ 0.

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    Securities

    Hobson Company bought the securities listed below during 2005. These securities were classified as trading securities. On its December 31, 2005, income statement Hobson reported a net unrealized loss of $13,000 on these ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what amount of loss on these securities should Hobson include in its income statement for the year ended December 31, 2006.

    $2.19

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