Question

Corporation has the following equity investments held throughout 2021–2022: Fair Value Cost 12/31/21 12/31/22 $600,000 $800,000 $760,000 What amount would be reported as accumulated other comprehensive income related to investments on the balance sheet at December 31, 2022?

Answer 1

Answer: $40,000 loss

Explanation:

A balance sheet is also referred to as the statement of financial position and it is a summary of financial balances of an economic agent i.e individual or organization.

The amount that would be reported as accumulated other comprehensive income related to investments on the balance sheet at December 31, 2022 will be:

= 800,000 - $760,000

= $40,000

There will be a $40,000 loss because the fair value on 12/31/21 of $800,000 is higher than the fair value of $760,000 on 12/31/22.