Question 15 At December 31, 2017, the available-for-sale debt portfolio for Bramble, Inc. is as follows:...

Question 15

At December 31, 2017, the available-for-sale debt portfolio for Bramble, Inc. is as follows:

Security Cost Fair Value Unrealized Gain (Loss)

A $62,125 $53,250 $(8,875 )

B 44,375 49,700 5,325

C 81,650 90,525 8,875

Total $188,150 $193,475 5,325

Previous fair value adjustment balance—Dr. 1,420

Fair value adjustment—Dr. $3,905

On January 20, 2018, Bramble, Inc. sold security A for $53,605. The sale proceeds are net of brokerage fees.

Bramble Inc. reports net income in 2017 of $426,000 and in 2018 of $497,000. Unrealized holding gains and gains equal $142,000 in 2018.

Prepare a statement of comprehensive income for 2017, starting with net income. BRAMBLE, INC Statement of Comprehensive Income For the Year Ended December 31, 2017

Prepare a statement of comprehensive income for 2018, starting with net income. BRAMBLE, INC Statement of Comprehensive Income For the Year Ended December 31, 2018

Solutions

Expert Solution

i) Preparing a statement of comprehensive income for 2017, starting with net income. BRAMBLE, INC Statement of Comprehensive Income For the Year Ended December 31, 2017

Bramble Inc. reports net income in 2017 of = $426,000

Fair value adjustment = Dr. $3,905

FLOUNDER, INC
Records of Income
End of Dec 17, 31
Total Net Income	426000
Other Income
Unrealized Holding Gain	3905
Comprehensive Income Total Net Income + Unrealized Holding Gain 426000 + 3905	429905

ii)Preparing a statement of comprehensive income for 2018, starting with net income. BRAMBLE, INC Statement of Comprehensive Income For the Year Ended December 31, 2018

Bramble Inc. reports net income in 2018 of = $497,000.

Unrealized holding gains and gains equal = $142,000

Particulars and Details

FLOUNDER, INC
End of Year Dec 31, 18
Total gross income of the FLOUNDER, INC		497000

Other Income
Holding Profit	142000
Addition
Reclassification Adjustment for Loss Included in Net Income Holding Gains + Net Income = 142000 + 8520 = 150520	8520	150520
Comprehensive Income FLOUNDER, INC+ Reclassification Adjustment for Loss Included in Net Income 497000 + 150520 = 647520		647520

Fair value adjustment = Dr. $3,905

Unrealized holding gains and gains equal in 2018 = $142,000

Accumulated Other comprhensive income
Pending bal , Jan1		3905
Present period OCI	142000
Accumulated Oci	8520
holding profit		150520
Ending Balance ,dec 31
beginning balance , Jan1 + Unrealised holding gain 3905 + 150520 = 154425		154425

Any doubt comment below i will explain until you got....
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ekkarill92 answered 1 year ago

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