Westside Corporation had an investment in available-for-sale securities of $70,000. This investment experienced an unrealized loss of $5000 during the year. Westside Corporation had a balance in its available-for-sale account of $169,000 at year end. Ignoring income taxes, the effect of this loss on comprehensive income will be:
A)$70,000 increase.
B)$65,000 decrease.
C)$104,000 increase.
D)$5000 decrease.

Question

Quizplus · Accepted Answer

The unrealized loss of $5000 on available-for-sale securities decreases comprehensive income by $5000.

Westside Corporation Had an Investment in Available-For-Sale Securities of $70,000