The change in fair value is deemed temporary

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At the beginning of year 2, a company invested $40,000 in a marketable equity security. At that time the security was appropriately classified as an available-for-sale security. At the end of year 2, the security had a fair value of $28,500. The change in fair value is deemed temporary. How should this change in fair value be reported in the financial statements?

As a realized loss of $11,500 as part of other comprehensive income.

As an unrealized loss of $11,500 as part of net income.

As a realized loss of $11,500 as part of net income.

As an unrealized loss of $11,500 as part of other comprehensive income

Reference no: EM131284796

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