Question

1-Cullumber Company reported the following information for 2020:

Sales revenue	$2055000
Cost of goods sold	1407000
Operating expenses	230000
Unrealized holding gain on available-for-sale securities	121600
Cash dividends received on the securities	8400

For 2020, Cullumber would report other comprehensive income of

$418000.

$130000.

$121600.

$426400.

2-Wildhorse Co. reports the following information:

Correction of overstatement of depreciation expense
in prior years, net of tax	$ 643000
Dividends declared	482000
Net income	1504000
Retained earnings, 1/1/20, as reported	5830000

Wildhorse should report retained earnings, 12/31/20, at

$6209000.

$6852000.

$7495000.

$5187000

3-Cullumber Company reports the following information:

Correction of understatement of depreciation expense
in prior years, net of tax	$ 1290000
Dividends declared	968000
Net income	3021000
Retained earnings, 1/1/20, as reported	5880000

Cullumber should report retained earnings, 12/31/20, at

$7933000.

$9223000.

$4590000.

$6643000.

Answer 1

1.
Answer is c.$121600
Unrealized holding gain on available-for-sale securities is considered other comprehensive income since it is not realized

2.
Answer is b. $7495000
=5830000+1504000-482000+643000

3.
Answer is d. $66430000
=5880000+3021000-968000-1290000