Trading Securities Purchased in 2010 for $85,000 Were Valued at $80,000

question 55

Multiple Choice

Trading securities purchased in 2010 for $85,000 were valued at $80,000 on December 31, 2010. The securities were sold at the beginning of 2011 for $83,000. The 2011 income statement should report a(n) :

• A)realized loss of $2,000.
• B)realized gain of $3,000.
• C)unrealized loss of $5,000 and a realized gain of $3,000.
• D)unrealized gain recovered of $3,000.

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Definitions:

Information Processing

The process of gathering, analyzing, and disseminating information by individuals or systems.

Traditional Pyramid

A hierarchical structure in organizations where each level represents a tier of authority, with the widest area at the bottom and the CEO or leadership at the top.

Nonprogrammed Variety

Decisions or tasks that are unique, complex and not routine, requiring specific judgment and creative problem solving.

Knowledge Management

The process of capturing, distributing, and effectively using knowledge within an organization.