Trading securities purchased in 2008 for $85,000 were valued at $80,000 on December 31, 2008. The securities were sold at the beginning of 2009 for $83,000. The 2009 income statement should report an):

Question

Quizplus · Accepted Answer

The securities were sold for $83,000, which is $3,000 more than their carrying value of $80,000 at the end of 2008, resulting in a realized gain of $3,000 in 2009.

Trading Securities Purchased in 2008 for $85,000 Were Valued at $80,000