Annual Report: Other Comprehensive Income (in millions) Year 1 Year 2 Year 3 Net unrealized gain...
Annual Report: Other Comprehensive Income (in millions) Year 1 Year 2 Year 3
Net unrealized gain (loss) on available-for-sale securities: Year 1: $(9,324) Year 2: $47,230 Year 3: $19,238
1. Explain why the net unrealized gain on available-for-sale securities was negative in Year 1.
2. Explain why the account balance became positive in Year 2 but then declined in Year 3. Are the changes in this account reported on company's income statement?
on the company’s income statement? Would this account appear on the statement of cash flow as well? Why or why not?
Homework Answers
The negative sign indicates that there is a decline in the value of investment.
The account became positive in year 2 because the market value of investment increased in year 2.
And then it reduced in year 3 but remained positive because of a decline in market value of the investment.
This changes does not require any treatment in the income statement. This also does not account for in the cash flow statement. It appears only in the balance sheet.
Add Answer to:
Annual Report: Other Comprehensive Income (in millions) Year 1
Year 2 Year 3
Net unrealized gain...
DB 4.8 - Comprehensive Income Francona Corporation reported the following for the current year: net sales...
DB 4.8 - Comprehensive Income Francona Corporation reported the following for the current year: net sales $6,000,000, cost of goods sold $3,750.000; selling and administrative expenses $1.600.000: and an unrealized holding gain on available-for-sale securities $90.000, Required: Prepare a statement of comprehensive income (as discussed and illustrated on pages 22-23 of Chapter 4), using (a) the one statement format and (b) the Iwo statement format Ignore income taxes and earnings per share,
P17.9 (LO 2,4) (Gain on Sale of Investments and Comprehensive Income) On January 1, 2020. Acker...
P17.9 (LO 2,4) (Gain on Sale of Investments and Comprehensive Income) On January 1, 2020. Acker Inc. had the following balance sheet. Acker Inc. Balance Sheet As of January 1, 2020 Assets Equity Cash $ 50,000 Common stock Debt investments (available-for-sale) 240,000 Accumulated other comprehensive income Total $290,000 Total $260,000 30,000 $290,000 The accumulated othe umulated other comprehensive income related to unrealized holding gains on available-for-sale curities. The fair value of Acker Inc.'s available-for-sale debt securities at December 31, 2020,...
A company's activities for Year 2 included the following: Unrealized gain on available for sale debt...
A company's activities for Year 2 included the following: Unrealized gain on available for sale debt securities 9,600 Cost of goods sold 1,400,000 Prior service cost adjustment for defined benefit pension plan 195,000 Selling and administrative expense 600,000 Gain on sale of available for sale securities 16,000 Gain on disposal of a discontinued business segment 26,000 Sales returns 106,000 Gross sales 7,300,000 The company has a 30% effective income tax rate. What is the company's net income for Year 2?...
E4.15 (LO 2,5) (Comprehensive Income) Roxanne Carter Corporation reported the following for 2020: net sales $1,200,000,...
E4.15 (LO 2,5) (Comprehensive Income) Roxanne Carter Corporation reported the following for 2020: net sales $1,200,000, cost of goods sold $750,000, selling and administrative expenses $320,000, and an unrealized holding gain on available-for-sale debt securities $18,000. Instructions Prepare a statement of comprehensive income, using (a) the one statement format, and (b) the two statement format. (Ignore income taxes and earnings per share.) E4.16 (LO 5) (Comprehensive Income) C. Reither Co. reports the following information for 2020: sales revenue $700,000, cost...
Affymetrix, Inc., reported a net gain of $79,000 on its foreign assets due to the weakening...
Affymetrix, Inc., reported a net gain of $79,000 on its foreign assets due to the weakening of the U.S. dollar in 2011. In the same year, the company disclosed unrealized gains of $2,271,000 on its available-for-sale securities and a $211,000 unrealized gain on its trading securities. The company also reported a $1,710,000 loss on the sale of some equipment. Which of the following best describes the impact of these transactions on Affymetrix, Inc.’s accounts? A) $ 851,000 increase to net...
an unrealized holding gain on available-for-sale debt securities $18,000. Instructions ment format. (Ignore income taxes and...
an unrealized holding gain on available-for-sale debt securities $18,000. Instructions ment format. (Ignore income taxes and earnings per share.) E4.16 (L05) (Comprehensive Income) C. Reither Co. reports the following information for 2020: sales revenue $700,000, cost of goods sold $500,000, operating expenses $80,000, and an unrealized hold ing loss on available-for-sale debt securities for 2020 of $60,000. It declared and paid a cash dividend of $10,000 in 2020. C. Reither Co. has January 1, 2020, balances in common stock $350,000;...
$3,300 2,700 12,800 89,700 Cost of Goods Sold, Income Statement, and Statement of Comprehensive Income Gaskin...
$3,300 2,700 12,800 89,700 Cost of Goods Sold, Income Statement, and Statement of Comprehensive Income Gaskin Company derives the following items from its adjusted trial balance as of December 31, 2019: Sales $142,000 Interest revenue Purchases returns 5,200 Purchases discounts taken Gain on sale of equipment (pretax) 3,800 Inventory, January 1, 2019 Freight-in 3,400 Purchases Selling expenses 15,600 Administrative expenses Unrealized increase in fair value of Loss from truck accident (pretax) 2,400 available-for-sale securities The following additional information is also...
Trayer Corporation has income from continuing operations of $256,000 for the year ended December 31, 2017....
Trayer Corporation has income from continuing operations of
$256,000 for the year ended December 31, 2017. It also has the
following items (before considering income taxes).
1. An unrealized loss of $86,000 on available-for-sale
securities
2. A gain of $32,000 on the discontinuance of a division
(comprised of a $18,000 loss from operations and a $50,000 gain on
disposal).
3. A correction of an error in last year’s financial statements
that resulted in a $30,000 understatement of 2016 net income....
At December 31, 2017, the available-for-sale debt portfolio for Whispering, Inc. is as follows: Unrealized Gain...
At December 31, 2017, the available-for-sale debt portfolio for Whispering, Inc. is as follows: Unrealized Gain (Loss) Security Cost Fair Value $44,625 $38,250 31,875 35,700 58,650 65,025 Total $135,150 $138,975 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. $(6,375 ) 3,825 6,375 3,825 1,020 $2,805 On January 20, 2018, Whispering, Inc. sold security A for $38,505. The sale proceeds are net of brokerage fees. Whispering Inc. reports net income in 2017 of $306,000 and in 2018 of $357,000. Unrealized holding...
Trayer Corporation has income from continuing operations of $325,000 for the year ended December 31, 2017....
Trayer Corporation has income from continuing operations of $325,000 for the year ended December 31, 2017. It also has the following items (before considering income taxes). 1. An unrealized loss of $70,900 on available for sale securities. Again of $23,200 on the discontinuance of a division (comprised of a $7,500 loss from operations and a $30,700 gain on disposal). 3. A correction of an error in last year's financial statements that resulted in a $20,000 understatement of 2016 net income....
DB 4.8 - Comprehensive Income Francona Corporation reported the following for the current year: net sales $6,000,000, cost of goods sold $3,750.000; selling and administrative expenses $1.600.000: and an unrealized holding gain on available-for-sale securities $90.000, Required: Prepare a statement of comprehensive income (as discussed and illustrated on pages 22-23 of Chapter 4), using (a) the one statement format and (b) the Iwo statement format Ignore income taxes and earnings per share,
P17.9 (LO 2,4) (Gain on Sale of Investments and Comprehensive Income) On January 1, 2020. Acker Inc. had the following balance sheet. Acker Inc. Balance Sheet As of January 1, 2020 Assets Equity Cash $ 50,000 Common stock Debt investments (available-for-sale) 240,000 Accumulated other comprehensive income Total $290,000 Total $260,000 30,000 $290,000 The accumulated othe umulated other comprehensive income related to unrealized holding gains on available-for-sale curities. The fair value of Acker Inc.'s available-for-sale debt securities at December 31, 2020,...
E4.15 (LO 2,5) (Comprehensive Income) Roxanne Carter Corporation reported the following for 2020: net sales $1,200,000, cost of goods sold $750,000, selling and administrative expenses $320,000, and an unrealized holding gain on available-for-sale debt securities $18,000. Instructions Prepare a statement of comprehensive income, using (a) the one statement format, and (b) the two statement format. (Ignore income taxes and earnings per share.) E4.16 (LO 5) (Comprehensive Income) C. Reither Co. reports the following information for 2020: sales revenue $700,000, cost...
an unrealized holding gain on available-for-sale debt securities $18,000. Instructions ment format. (Ignore income taxes and earnings per share.) E4.16 (L05) (Comprehensive Income) C. Reither Co. reports the following information for 2020: sales revenue $700,000, cost of goods sold $500,000, operating expenses $80,000, and an unrealized hold ing loss on available-for-sale debt securities for 2020 of $60,000. It declared and paid a cash dividend of $10,000 in 2020. C. Reither Co. has January 1, 2020, balances in common stock $350,000;...
$3,300 2,700 12,800 89,700 Cost of Goods Sold, Income Statement, and Statement of Comprehensive Income Gaskin Company derives the following items from its adjusted trial balance as of December 31, 2019: Sales $142,000 Interest revenue Purchases returns 5,200 Purchases discounts taken Gain on sale of equipment (pretax) 3,800 Inventory, January 1, 2019 Freight-in 3,400 Purchases Selling expenses 15,600 Administrative expenses Unrealized increase in fair value of Loss from truck accident (pretax) 2,400 available-for-sale securities The following additional information is also...
Trayer Corporation has income from continuing operations of
$256,000 for the year ended December 31, 2017. It also has the
following items (before considering income taxes).
1. An unrealized loss of $86,000 on available-for-sale
securities
2. A gain of $32,000 on the discontinuance of a division
(comprised of a $18,000 loss from operations and a $50,000 gain on
disposal).
3. A correction of an error in last year’s financial statements
that resulted in a $30,000 understatement of 2016 net income....
At December 31, 2017, the available-for-sale debt portfolio for Whispering, Inc. is as follows: Unrealized Gain (Loss) Security Cost Fair Value $44,625 $38,250 31,875 35,700 58,650 65,025 Total $135,150 $138,975 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. $(6,375 ) 3,825 6,375 3,825 1,020 $2,805 On January 20, 2018, Whispering, Inc. sold security A for $38,505. The sale proceeds are net of brokerage fees. Whispering Inc. reports net income in 2017 of $306,000 and in 2018 of $357,000. Unrealized holding...
Trayer Corporation has income from continuing operations of $325,000 for the year ended December 31, 2017. It also has the following items (before considering income taxes). 1. An unrealized loss of $70,900 on available for sale securities. Again of $23,200 on the discontinuance of a division (comprised of a $7,500 loss from operations and a $30,700 gain on disposal). 3. A correction of an error in last year's financial statements that resulted in a $20,000 understatement of 2016 net income....
Most questions answered within 3 hours.
-
without using map
1. Write a C++ program to find out the top 10 words in...
asked 16 seconds ago -
A physics major is cooking breakfast when he notices that the
frictional force between the steel...
asked 3 minutes ago -
1)Calculate the percent ionization of a
0.330 M solution of hypochlorous
acid.
% Ionization = %...
asked 2 minutes ago -
A cyclohexane (c-hex) solution is prepared by fully dissolving
9.11g of a newly synthesized organic compound...
asked 9 minutes ago -
SCHEME :-)
[5 marks] Write a procedure called convert that takes as
arguments: a temperature value...
asked 16 minutes ago -
Are
Acetyl CoA and Pyruvate biological molecules that are used to get
ATP energy in aerobic...
asked 17 minutes ago -
Two waves are traveling on a string, one with a wave function,
y1 = 0.05sin(4x -...
asked 24 minutes ago -
Develop an ideal customer profile for three Dell Customer
groups( a supplier, a global business, and...
asked 27 minutes ago -
Suppose, for any future year, the probability its October rain
is more than 3 inches is...
asked 31 minutes ago -
Solve the following systems of linear equations using
substitution 12p + 3q = 15 6q +...
asked 38 minutes ago -
Prof. D went grocery shopping and purchased one dozen eggs and
one pound of flour (all...
asked 45 minutes ago -
If
somehow loop of Henle were removed - that is if the proximal tubule
was connected...
asked 46 minutes ago