At December 31, 2017, the trading debt securities for Blue Bell, Inc. are as follow Blue Bell should report the following amount related to the securities transactions in its 2017 income statement

Question

At December 31, 2017, the trading debt securities for Blue Bell, Inc. are as follow  Blue Bell should report the following amount related to the securities transactions in its 2017 income statement

Quizplus · Accepted Answer

Based on the information provided, the fair value of the trading debt securities at December 31, 2017 is $94,000 ($100,000 - $6,000 unrealized loss). This represents a decrease in fair value from the original cost of $100,000, resulting in an unrealized loss of $6,000. Since the securities are classified as trading, any gains or losses would be recognized in the income statement. Therefore, Blue Bell should report a $6,000 unrealized loss in its 2017 income statement.

At December 31, 2017, the Trading Debt Securities for Blue