a-company-reports-a-4000-unrealized-loss-from-trading-securities-on-its-income-s

Question

A company reports a $4,000 unrealized loss from trading securities on its income statement. How does this affect the company's equity?

Accepted Answer

It decreases equity by $4,000.

Answer

It decreases equity by $2,000.

Answer

It has no effect on equity.

Answer

It increases equity by $4,000.

A company reports a \$4,000 unrealized loss from trading securities on its income statement. How does this affect the company's equity?