Information regarding Stone Co.'s available-for-sale portfolio of marketable equity securities is as follows:

 

　　Aggregate cost as of 12/31/Y2 　　$ 170,000

 

　　Market value as of 12/31/Y2 　　148,000

 

　　At December 31, Year 1, Stone reported an unrealized loss of $1,500 to reduce investments to market value. This was the first such adjustment made by Stone on these types of securities. In its Year 2 statement of comprehensive income, what amount of unrealized loss should Stone report?

 

　　a. $0

 

　　b. $30,000

 

　　c. $22,000

 

　　d. $20,500

 

　　Explanation

 

　　Choice "d" is correct. Stone must report a net cumulative loss on its Statement of Stockholders' Equity (under "Accumulated Other Comprehensive Income") of $22,000 ($148,000 FMV ? $170,000 Cost). Stone has already reported a $1,500 loss as of 12/31/Y1; therefore, an unrealized loss of $20,500 ($22,000 ? $1,500) should be reported in the Statement of Comprehensive Income (as part of other comprehensive income) for Year 2.