Skywalker Limited purchased shares of Jedi Jewelers during 2015 for $124,000.Skywalker elected the fair value option for accounting for this investment.At year end 2015,2016,and 2017,this investment had a fair value of $120,000,$130,000,and $135,000,respectively.What is the amount of unrealized gain or loss reported on this investment at year-end 2017?

Question

Quizplus · Accepted Answer

The unrealized gain at year-end 2017 is calculated as the difference between the fair value at the end of 2017 ($135,000) and the fair value at the end of 2016 ($130,000), resulting in a gain of $5,000.

Skywalker Limited Purchased Shares of Jedi Jewelers During 2015 for $124,000.Skywalker