Laski Corp.holds two trading investments and has decided to use the fair value through profit or loss model.At year end, one has an unrealized gain of $2,000 and the other has an unrealized loss of $4,500.The trading investments would be reported at fair value and Laski Corp.would report a net unrealized loss of
A)$2,500 in the statement of income.
B)$4,500 in the statement of income.
C)$2,500 in the statement of comprehensive income.
D)$4,500 in the statement of comprehensive income.

Question

Quizplus · Accepted Answer

Under the fair value through profit or loss model, both unrealized gains and losses are reported in the statement of income. The net unrealized loss is $4,500 - $2,000 = $2,500.