On its December 31, 2019, balance sheet, Estes Co. reported its investment in trading securities,...
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Accounting
On its December 31, 2019, balance sheet, Estes Co. reported its investment in trading securities, which had cost $475,000, at fair value of $525,000. At December 31, 2020, the fair value of the securities was $507,500. What should Estes report on its 2020 income statement as a result of the decrease in fair value of the investments in 2020?
$0.
Unrealized gain of $17,500.
Realized loss of $17,500.
Unrealized loss of $7,500.
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