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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, Accounting

Category:- Accounting Basics
Reference No.:- M995168

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