单选题
Earlier this year, Ponca Corporation purchased non-dividend paying equity securities which it classified as trading securities. Information related to the securities is as follows:
| Security | Cost | Fair value at year- end |
| X | $400000 | $435000 |
| Y | $550000 | $545000 |
What amounts should Ponca report in its year-end income statement and balance sheet as a result of its investment in securities X and Y?（ ）
【正确答案】
C
【答案解析】
Trading securities are reported in the balance sheet at fair value. At the end of the year, the fair value of the securities was $980000 ($435000+$545000). The unrealized gains and losses from trading securities are recognized in the income statement. Thus, Ponca would recognize an unrealized gain of $30000 ($980000 fair value-$950000 cost).