if the company recorded a $4,000 debit to its fair value adjustment account as its 20x2 fair value adjustment, what must have been the unrealized gain or loss reported at the end of 20x1?

Respuesta :

The unrealized gain or loss reported at the end of 2017 is -$18,000.

What is gain or loss?
Investments will inevitably result in gains and losses. Every investor looks for profits. However, there's a good chance that an investment portfolio would then suffer losses when things don't turn out as planned. When the asset's current value exceeds what an investor paid for it, a gain has occurred. In contrast, a loss indicates that the price has fallen because the investment has been made. Simply put, a gain is an increase in an asset's value, whereas a loss is a decrease in value. It is possible to distinguish between realised and unrealized gains and losses. If the realised price does not exactly match the price paid, investors either make a profit or a loss once they sell an asset. Unrealized gains as well as losses are changes in an investment's value that occur before it is sold.

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