Six months ago,a company purchased an investment in stock for $70,000.The investment is classified as available-for-sale securities.This is the company's first and only investment in available-for-sale securities.The current fair value of the stock is $68,500.The company should record a:

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The decrease in the fair value of the investment indicates an unrealized loss. As it is classified as available-for-sale securities, the company should record the unrealized loss in equity under the account Unrealized Loss-Equity. The amount of the loss is calculated as the difference between the original cost and the current fair value, which is $1,500 ($70,000 - $68,500). Therefore, the company should record a debit to Unrealized Loss-Equity for $1,500. None of the other options are appropriate for this scenario.

Six Months Ago,a Company Purchased an Investment in Stock for $70,000.The