An entity had investments in marketable debt securities costing 650,000 that were classified as available-for-sale. On June 30, year 2, it decided to hold the investments to maturity and accordingly...

An entity had investments in marketable debt securities costing 650,000 that were classified as available-for-sale. On June 30, year 2, it decided to hold the investments to maturity and accordingly reclassified them to the held-to-maturity category on that date. The investments’ fair value was 575,000 at December 31, year 1, 530,000 at June 30, year 2, and 490,000 at December 31, year 2. The entity does not elect the fair value option to account for these investments.

What amount of loss from investments should the entity report in its year 1 income statement?

What amount should the entity report as net unrealized loss on marketable debt securities in its year 2 statement of stockholders’ equity?