Hobson Company bought the securities listed below during 2020. These securities were classified as trading securities. In its December 31, 2020, income statement Hobson reported a net unrealized holding loss of $15,500 on these securities. Pertinent data at the end of June 2021 is as follows: Security Cost Fair Value
X $371,000 $343,500
Y 185,000 162,400
Z 424,000 407,800

Required:
What amount of unrealized holding loss on these securities should Hobson include in its income statement for the six months ended June 30, 2021?

$50,800

Explanation:

Security     Cost       Fair value     Gain(loss)

X              371,000    343,500        -27,500  

Y              185,000     162,400        -22,600  

Z              424,000    407,800        -16,200

Total        980,000    913,700         -66,300

Unrealized holding loss on Income statement ended June 30,2021 = $66,300 - $15,500 = $50,800

a.   is the correct choice.

good luck. : )

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