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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Comprehensive income

On December 31, Year 1, Valur Co. had the following available-for-sale investment disclosure within the Current Assets .section of the balance .sheet:

Available-for-sale investments (at cost) $145,000
Plus valuation allowance for available-for-sale investments 40.000
Available-for-sale investments (at fair value) $185.000

There were no purchases or sales of available-for-sale investments during Year 2, On December 31. Year 2, the fair value of the available-for-sale investment portfolio was $200,000. The net income of Valur Co. was $210,000 for Year 2.

Compute the comprehensive income for Valur Co. for the year ended December 31, Year 2.

To determine

Comprehensive income: The financial items which result in changes in the stockholders’ equity, other than stock investments and dividends, are referred to as comprehensive income. Comprehensive income should be reported on income statement, and statement of comprehensive income.

To determine: Comprehensive income for Corporation V, for the year ended December 31, Year 2

Explanation

Determine comprehensive income for Corporation V, for the year ended December 31, Year 2

Corporation V
Income Statement (Partial)
For the Year Ended December 31, Year 2
Net income $210,000
Other comprehensive income (loss):  
  Unrealized gain on available-for-sale investments 15,000
Comprehensive income

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