An unrealized gain or loss that relates to a passive investment represents:

Question

Quizplus · Accepted Answer

A passive investment is one in which the investor does not have significant control or influence over the investee company. Therefore, the unrealized gain or loss from such an investment reflects the extent to which the investor's wealth has increased or decreased due to holding the investment, even though it remains unrealized until the investment is sold. It does not represent an undervalued investment or the profit or loss made when trading securities were sold, nor does it necessarily include the total dividends received from the investee company during the year.

An Unrealized Gain or Loss That Relates to a Passive