Question

Valet Corporation began operations in 2018. An analysis of Valet's debt securities portfolio acquired in 2018 shows the following totals at December 31, 2018 for trading and available-for-sale debt securities:Trading Securities...Available-for-Sale SecuritiesAggregate cost $180,000...$220,000Aggregate fair value 160,000...190,000What amount should Valet report in its 2018 income statement for unrealized holding loss?1. $20,000.2. $30,000.3. $50,000.4. $10,000

Answer 1

1. $20,000.

Step-by-step explanation:

unrealized holding loss = Aggregate cost - Aggregate fair value

= 180,000 - 160,000

= ($20,000) Loss

Therefore, The amount that Valet should report in its 2018 income statement for unrealized holding loss is $20,000.