Asked by Agnes Arzumanyan on May 31, 2024
Verified
Pan Inc. has an investment in available-for-sale securities of $70000. This investment experienced an unrealized loss of $6000 during the current year. Assuming a 35% tax rate the effect of this loss on comprehensive income will be
A) no effect.
B) $70000 increase.
C) $24500 decrease.
D) $6000 decrease.
Comprehensive Income
The change in equity of a company during a period from transactions and other events, excluding any owner contributions and distributions.
Unrealized Loss
A financial loss that has occurred on paper due to the current market value being lower than the asset's purchase price, but has not yet been realized through sale.
Tax Rate
The percentage at which an individual or corporation is taxed, which can vary based on income levels, jurisdictions, or specific goods and services.
- Acquire knowledge of comprehensive income and the elements it encompasses.
Verified Answer
Learning Objectives
- Acquire knowledge of comprehensive income and the elements it encompasses.
Related questions
How May a Corporation Report Its Types of Comprehensive Income ...
Which of the Following Is Not an Acceptable Way of ...
When Is a Company Not Required to Report Comprehensive Income ...
Comprehensive Income Is an Important Concept in Accounting Because It ...
Why Did FASB Decide It Was Necessary to Require the ...