What amount of loss on securities


Edwards Company began business in February of 2007. During the year, Edwards purchased the three trading securities listed below. On its December 31, 2007, balance sheet, Edwards appropriately reported a $4,000 credit balance in its Market Adjustment- Trading Securities account. There was no change during 2008 in the composition of Edward's portfolio of trading securities. Pertinent data are as follows:

Security Cost Market Value December 31, 2008

A $120,000 $126,000
B 90,000 80,000
C 160,000 157,000
D $370,000 $363,000

What amount of loss on these securities should be included in Edward's income statement for the year ended December 31, 2008?

A. $0

B. $3,000

C. $7,000

D. $11,000

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Accounting Basics: What amount of loss on securities
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