Westside Corporation had an investment in available-for-sale securities of $60,000.This investment experienced an unrealized loss of $7,000 during the year.Ignoring income taxes,the effect of this loss on comprehensive income will be:
A)$60,000 increase.
B)$60,000 decrease.
C)$7,000 increase.
D)$7,000 decrease.

Question

Quizplus · Accepted Answer

The unrealized loss of $7,000 will decrease the comprehensive income by $7,000. Therefore, the correct answer is option D, which is $7,000 decrease.

Westside Corporation Had an Investment in Available-For-Sale Securities of $60,000