Sanders Company Began Business in February of 2013

question 37

Multiple Choice

Sanders Company began business in February of 2013.During the year,Sanders purchased the three trading securities listed below.On its December 31,2013,balance sheet,Sanders appropriately reported a $4,000 credit balance in its Market Adjustment--Trading Securities account.There was no change during 2014 in the composition of Sanders' portfolio of trading securities.Pertinent data are as follows:

What amount of loss on these securities should be included in Sanders' income statement for the year ended December 31,2014?

• A)$0
• B)$3,000
• C)$7,000
• D)$11,000

---

Definitions:

Studentized Residuals

Residuals divided by an estimate of their standard deviation, used in statistics to help identify outliers in a regression analysis.

Histogram

A graphical representation of the distribution of numerical data, where the data is divided into bins or intervals, and the frequency of the data in each bin is depicted by the height of the bar.

Distribution

In statistics, distribution describes how the values of a dataset or variable are spread or dispersed.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression (e.g., 4 in 4x).