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If a company experiences an unrealized loss of $9,000 during the current year on a $125,000 investment in available-for-sale securities, what effect
If a company experiences an unrealized loss of $9,000 during the current year on a $125,000 investment in available-for-sale securities, what effect would this loss have on net income, other comprehensive income, and comprehensive income? Assume a 22% tax rate.
- A
- :
- no effect to net income, $7,020 decrease to other comprehensive income, $7,020 decrease to comprehensive income
- B
- :
- $7,020 decrease to net income, $7,020 decrease to other comprehensive income, $7,020 decrease to comprehensive income
- C
- :
- $7,020 decrease to net income, no effect to other comprehensive income, $7,020 decrease to comprehensive income
- D
- :
- $9,000 decrease to net income, no effect to other comprehensive income, $9,000 decrease to comprehensive income