On December 31, 2020, Patel Company purchased debt securities as trading securities. Pertinent data are as follows: Security Cost Fair Value at 12/31/21 A $132,000 $119,000 B 172,000 186,000 C 288,000 263,000 On December 31, 2021, Patel transferred its investment in security C from trading to available-for-sale because Patel intends to retain security C as a long-term investment. What total amount of gain or loss on its securities should be included in Patel's income statement for the year ended December 31, 2021

The total amount of loss that will be included in Patel's income statement for the year ended Dec 31st 2021 will be $24000. This loss will be transferred to the P and L accounts of Patel.

Patel has incurred this loss on trading of investments like A, B and C as the differences between the cost of purchase and realizable value is in a deficit of  total $24000 after calculations.

Hence after adding the values of A+B+C i.e., (-13000)+ 14000 + (-25000) we can conclude that the total loss on sale of securities to be included in Patel Co. will be $24000.

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the loss on the securities that should be included in the income statement is -$24,000

Explanation:

The computation of the total amount or gain or loss that included in the income statement is shown below;

Security     Fair value           cost         Gain or loss

A                 $119,000           $132,000  ($13,000)

B                  $186,000          $172,000  $14,000

C                   $263,000        $288,000  ($25,000)

Net loss                                                      ($24,000)

Hence, the loss on the securities that should be included in the income statement is -$24,000

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