During its first year of operation, Snapper Limited (a public company) acquired three securities as trading investments held for. Investment A cost $75,000 and had a year-end fair value of $80,000. Investment B cost $42,000 and had a year-end fair value of $26,000. Investment C cost $32,000 and had a year-end fair value of $30,000. What amount should be reported as an unrealized loss in Snapper's income statement for the first year of operation?
A) $0
B) $13,000
C) $18,000
D) $23,000

Question

Quizplus · Accepted Answer

Investment B had a fair value of $26,000 at the end of the year, which is $16,000 less than its cost of $42,000. This unrealized loss should be reported in Snapper's income statement for the first year of operation.

During Its First Year of Operation, Snapper Limited (A Public