Question

Hobson Company bought the securities listed below during 2020. These securities were classified as trading securities. In its December 31, 2020, income statement Hobson reported a net unrealized holding loss of $10,000 on these securities. Pertinent data at the end of June 2021 is as follows: SecurityCostFair Value X$360,000 $340,000 Y 190,000 160,300 Z 420,000 405,000 What amount of unrealized holding loss on these securities should Hobson include in its income statement for the six months ended June 30, 2021

Answer 1

$54,700

Step-by-step explanation:

Calculation to determine What amount of unrealized holding loss on these securities should Hobson include in its income statement for the six months ended June 30, 2021

Security Cost Fair value Gain(loss)

X $360,000 $340,000 -$20,000

Y $190,000 $160,300 -$29,700

Z $420,000 $405,000 -$15,000

Total $970,000 $905,300 -$64,700

Unrealized holding loss on Income statement ended June 30,2021 = $64,700 - $10,000

Unrealized holding loss on Income statement ended June 30,2021 = $54,700

Therefore the amount of unrealized holding loss on these securities should Hobson include in its income statement for the six months ended June 30, 2021 is $54,700