On November 16, 2027, XYZ Company purchased 17,000 shares (representing 12%) of Company C stock for $13 per share. On August 23, 2028, XYZ Company sold 2,400 shares of the Company C stock for $19 per share. The market value of the Company C stock at December 31, 2028 was $29 per share. XYZ Company sold 3,500 shares of the Company C stock on March 20, 2029 for $33 per share. At December 31, 2029, the market value of the Company C stock was $11 per share. Calculate the amount of the unrealized loss reported on XYZ Company's 2029 income statement. Do not enter your answer with a minus sign in front of your number.
On November 16, 2027, XYZ Company purchased 17,000 shares
(representing 12%) of Company C stock for $13 per share.
On August 23, 2028, XYZ Company sold 2,400 shares of the
Company C stock for $19 per share. The market value of
the Company C stock at December 31, 2028 was $29 per share.
XYZ Company sold 3,500 shares of the Company C stock on
March 20, 2029 for $33 per share. At December 31, 2029,
the market value of the Company C stock was $11 per share.
Calculate the amount of the unrealized loss reported on
XYZ Company's 2029 income statement. Do not enter your
answer with a minus sign in front of your number.
Unrealized losses are losses that have not yet been liquidated but whose value has decreased. When a depreciating asset is eventually sold, unrealized losses become realized losses. Unrealized losses might or might not affect a firm's accounting, depending on the kind of security. Only losses that are realized are reported as capital losses for tax purposes.
Step by step
Solved in 3 steps with 1 images
