At December 31, 2014, the trading securities for Saddle, Inc. are as follows: $\begin{array}{lrr}\text {Security }&\text {Cost }&\text {Fair Value }12/31/14\
\text { A } & \$ 90,000 & \$ 94,000 \
\text { B } & 150,000 & 141,000 \
\text { C } & 32,000 & 30,000
\end{array}$ Saddle should report the following amount related to the securities in its 2014 income statement:

Question

Quizplus · Accepted Answer

Trading securities are reported at fair value, with unrealized gains and losses recognized in the income statement. The unrealized loss on security A is $4,000 ($94,000 - $90,000), and the unrealized loss on security C is $2,000 ($30,000 - $32,000). The total unrealized loss is $7,000.

At December 31, 2014, the Trading Securities for Saddle, Inc