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Laurent Invested $19,000 in Shares of DEF During Year 1,classifying

Question 68

Multiple Choice

Laurent invested $19,000 in shares of DEF during Year 1,classifying the investment as available-for-sale.The fair value of this investment was $17,500 and $22,000 at the end of Year 1 and Year 2,respectively.What is the unrealized gain or loss for this investment at the end of Year 1 and how is it reported?


A) Unrealized Loss of $1,500,reported as part of Other Comprehensive Income.
B) Unrealized Loss of $1,500,reported as part of Net Income.
C) Unrealized Gain of $3,000,reported as part of Other Comprehensive Income.
D) Unrealized Gain of $3,000,reported as part of Net Income.

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