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Sloan Company's trading securities portfolio which is appropriately included in current assets is as follows:

December 31, 2007

Cost Fair Value Unrealized Gain (Loss)
Arlington Corp. 260,000 210,000 -$50,000
Downs, Inc. 245,000 265,000 $20,000

Totals: $505,000 $475,000 -$30,000

Ignoring income taxes, what amount should be reported as a charge against income in Sloan's 2007 income statement if 2007 is Sloan's first year of operation? Answer: $30,000.

What steps or formula do I follow to get 30,000?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M957208

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