Question
In: Accounting
The following information relates to the Brown Corporation for the year ended December 31, 2017: 2017...
The following information relates to the Brown Corporation for the year ended December 31, 2017:
2017 net income $75,000
Unrealized holding gain on available-for-sale debt securities during the year $6,000
Unrealized holding loss on equity securities classified as trading securities ($4,000)
The accumulated other comprehensive income (AOCI) account had a credit balance of $45,000 at the end of 2016. Assuming no other changes during the year affected AOCI and assuming that the unrealized loss on trading securities is already reflected in 2017 income, determine the following:
OTHER COMPREHENSIVE INCOME FOR THE YEAR
COMPREHENSIVE INCOME FOR THE YEAR
ENDING BALANCE IN ACCUMULATED OTHER COMPREHENSIVE INCOME
Solutions
Expert Solution
| Computation of Other Comprehensive Income for the year | ||
| Particulars | Amount | |
| A | Unrealised holding gain on available for sale debt securities | $ 6,000 |
| B | Unrealised holding loss on equity securities | $ (4,000) |
| C | Other Comprehensice Income for the Year (A+B) | $ 2,000 |
| Computation of Accumulated Other Comprehensive Income | ||
| Particulars | Amount | |
| D | Accumulated other Comprehensive Income at beginning of 2017 | $ 45,000 |
| Add: | Other Comprehensive Income for the year | $ 2,000 |
| E | Accumulated other Comprehensive Income at end of 2017 (C+D) | $ 47,000 |
| Computation of Comprehensive Income for year 2017 | ||
| Particulars | Amount | |
| F | Net Income | $ 75,000 |
| Add: | Accumulated other Comprehensive Income at end of 2017 | $ 47,000 |
| Comprehensive Income for 2017 (E+F) | $ 122,000 | |
ekkarill92 answered 1 year agoRelated Solutions
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