On its December 31, 2017, balance sheet, Estes Co. reported its investment in trading debt securities, which had cost $500,000, at fair value of $475,000. At December 31, 2018, the fair value of the securities was $492,500. What should Estes report on its 2018 income statement as a result of the increase in fair value of the investments in 2018?
(a) $0
(b) Unrealized loss of $7,500
(c) Realized gain of $17,500
(d) Unrealized gain of $17,500
Ans: (d) Unrealized gain of $17,500
Business
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