Explore BrainMass

Explore BrainMass

    This addresses an unrealized holding loss for securities.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Valet Corp. began operations in 2010. An analysis of Valet's equity securities portfolio acquired in 2010 shows the following totals at December 31, 2010 for trading and available-for-sale securities:

    Trading Securities Avalable For Sale Securities

    Aggragate Cost $90,000 $110,000
    Aggragate Fair Value 65,000 95,000

    What amount should Valet report in its 2010 income statement for unrealized holding loss?

    a) 40,000
    b) 10,000
    c) 15,000
    d) 25,000

    © BrainMass Inc. brainmass.com October 10, 2019, 4:41 am ad1c9bdddf

    Solution Summary

    The solution provides the calculations needed to determine the amount that Valet should report for an unrealized holding loss.