# On May 12, Year 1, Chewco Co. purchased 2,000 shares of Jedi Inc. for $112 per share, including the brokerage commission. The Jedi investment was classified as an available-for-sale security. On December 31, Year 1, the fair value of Jedi Inc. was$124 per share. The net income of Chewco Co. was $50,000 for Year 1. Compute the comprehensive income for Chewco Co. for the year ended December 31, Year 1. BuyFindarrow_forward ### Financial Accounting 15th Edition Carl Warren + 2 others Publisher: Cengage Learning ISBN: 9781337272124 #### Solutions Chapter Section BuyFindarrow_forward ### Financial Accounting 15th Edition Carl Warren + 2 others Publisher: Cengage Learning ISBN: 9781337272124 Chapter 15, Problem 28E Textbook Problem 1 views ## On May 12, Year 1, Chewco Co. purchased 2,000 shares of Jedi Inc. for$112 per share, including the brokerage commission. The Jedi investment was classified as an available-for-sale security. On December 31, Year 1, the fair value of Jedi Inc. was $124 per share. The net income of Chewco Co. was$50,000 for Year 1.Compute the comprehensive income for Chewco Co. for the year ended December 31, Year 1.

To determine

Calculate comprehensive income for Corporation C, for the year ended December 31, Year 1

### Explanation of Solution

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.

Determine comprehensive income for Corporation C, for the year ended December 31, Year 1

 Corporation C Income Statement (Partial) For the Year Ended December 31, Year 1 Net income $50,000 Other comprehensive income (loss): Unrealized gain on available-for-sale investments 24,000 Comprehensive income$74,000

Table (1)

Working Notes:

Compute the unrealized gain (loss) as on December 31...

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