On January 1,Butte Company's Valuation Allowance for Trading Investments account has a debit balance of $23,200.On December 31,the cost of the trading securities portfolio was $80,000.The fair value was $98,000.Which of the following would Butte report on the income statement for the current year?
A) an unrealized loss on trading investments,$5,200
B) an unrealized gain on trading investments,$5,200
C) an unrealized gain on trading investments,$18,000
D) an unrealized loss on trading investments,$18,000
Correct Answer:
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