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Question
Almond Industries owns an investment that experienced a decline during 2012 that has been judged to be "other than temporary". The investment is held in Almond's trading portfolio. It was purchased in March 2011 at a cost of $460,000. At the end of 2011, the fair value of the investment was $520,000. At the end of 2012, the fair value of the investment is $410,000. What amount of loss will Almond Industries report on its income statement for the year ending December 31, 2012 related to this investment?
A. An unrealized loss $110,000.
B. An unrealized loss of $50,000.
C. An unrealized loss of $60,000.
D. A realized loss of $50,000.
Answer
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