Question

On September 30, 20x6, Riches Inc. made three investments: 1274 shares of Wendle Inc., 4191 shares of Sam International, and 845 shares of Hinter Inc. The shares of Wendle Inc. and Hinter Inc. are classified as FVTPL and the shares of Sam International are classified as FVTOCI. The market price per share is as follows: Wendle Inc. Sam Hinter Inc International Sept. 30, x6 $12.62 $5.69 $7.57 Dec. 31, x6 $16.51 $8.22 $4.05 What amount would be reported as total comprehensive income for the year 20x6, assuming income before gains/losses on investments is $150384? Select one: a. $12585 b. $162969 c. $152365 od. $10603 Check

Answer 1

Calculate gain or loss :

	Wendle Inc	Sam international	Hinter Inc
Purchase cost	1274*12.62 = 16077.88	4191*5.69 = 23846.79	845*7.57 = 6396.65
Gain	3.89*1274 = 4955.86	4191*2.53 = 10603.23	845*3.52 = -2974.40

Calculate total comprehensive income

Income before gains and losses	150384
Unrealized Gain from trading securities	1981.46
Net income	152365.46
Unrealized Gain on available for sale securities	10603.23
Comprehensive income	162969

So answer is b) $162969