During the current year, The Hampton Company purchased 200 shares of Hilton stock for $15,000 as a short-term investment. At the end of the year, the market value of the stock was $11,000. The Hampton Company's financial statements for the current year will show:
A) an unrealized loss of $4,000 on the income statement and short-term investments of $15,000 on the balance sheet.
B) an unrealized gain of $4,000 on the income statement and short-term investments of $11,000 on the balance sheet.
C) an unrealized loss of $4,000 on the income statement and short-term investments of $11,000 on the balance sheet.
D) all of the above.
Correct Answer:
Verified
Q25: When a company sells a trading investment,
Q26: Investments in trading securities are reported on
Q27: Unrealized gains and losses occur when:
A)the investment
Q28: Trading securities purchased for $400,000 were valued
Q29: Trading securities purchased in 2010 for $85,000
Q32: Unrealized gains or losses on trading securities
Q33: The accounts receivable account in the general
Q34: Subsidiary records provide no information about control
Q35: An unrealized loss on a marketable security
Q36: Accounts receivable are current assets.
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