What amount of gain or loss will be reported for an investment held at different fair values from one year to the next?

For an investment, the amount of gain or loss reported is determined by the change in fair value from one accounting period to the next. If the fair value of the investment decreases over the year, it results in a loss for the reporting period.

In this scenario, if the investment was worth a certain amount last year and is reported at a lower fair value this year, the difference represents a loss, reflecting a reduction in the expected economic benefit from that investment. Therefore, taking into account the decrease accurately shows how the investment's value has changed, leading to the reported loss.

The key point here is the calculation of the fair value difference, which, if negative, indicates a loss when compared to the previous year's fair value. Hence, the conclusion drawn about a $60,000 loss reflects that decline appropriately within the context of financial reporting.