Unrealized Gains and Losses Occur When

question 112

Multiple Choice

Unrealized gains and losses occur when:

• A)the investment is sold.
• B)the cost of the investment differs from the current market value.
• C)the investment has not been sold.
• D)both B and C occur.

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Definitions:

Schedule D

A form used with the U.S. federal income tax return to report capital gains and losses from the sale, exchange, or disposition of capital assets.

Mortgage Interest

The interest charged on a loan used to purchase a residence, which can be deductible for taxpayers who itemize deductions on their income tax returns.

Property Taxes

Taxes assessed on real estate by local government, based on the property's assessed value.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.