Net value of trading investments on the balance sheet

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On November 15, 2011, Beta Company purchased 500 shares of Aquarium Suppliers Corporation for a short term investment at $60 per share. (Aquarium Suppliers has 1,000,000 shares of common stock issued and outstanding.) At December 31, 2011, the market value of Aquarium Suppliers was $52 per share. How would these facts be reflected on the financial statements of Beta Company?

The net value of trading investments on the balance sheet would remain the same.

The income statement would include the unrealized holding loss.

The net value of trading investments on the balance sheet would increase.

The income statement would include Loss on sale of investments.

Reference no: EM13823222

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