During 2012, Walker Corp. acquired 500 shares of Wychek stock at $30 per share. Walker accounted for the stock as trading securities. The market price per share of Wychek's stock as of December 31, 2012 and 2013, is $22.50 and $37.50, respectively. How much unrealized gain or loss on long-term investments should Walker report on its December 31, 2012, income statement?

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Quizplus · Accepted Answer

Walker Corp. acquired 500 shares of Wychek stock at $30 per share, for a total cost of $15,000. The market price per share of Wychek's stock as of December 31, 2012, is $22.50. Therefore, the unrealized loss on long-term investments is $3,750 ($22.50 - $30) x 500 shares.