Question

At December 31, 2020, the available-for-sale debt portfolio for Wildhorse, Inc. is as follows. Security - Cost Fair Value $18,000 $15,300 12,500 14,500 22,200 25,500 Total $52,700 $55,300 Previous fair value adjustment balance-Dr. Fair value adjustment-Dr. Unrealized Gain (Loss) $(2,700 ) 2,000 3,300 2,600 300 $2,300 On January 20, 2021, Wildhorse, Inc. sold security A for $15,400. The sale proceeds are net of brokerage fees. Wildhorse, Inc. reports net income in 2020 of $122,000 and in 2021 of $142,000. Total holding gains (including any realized holding gain or loss) equal $49,000 in 2021. Prepare a statement of comprehensive income for 2020, starting with net income. WILDHORSE, INC Statement of Comprehensive Income

Answer 1

Answer comprehensive Income Comprehensive Income is the total income during thiveleught period from perating and non-operating acliuty. It shows what que the different ways That a partiylyn person earnel such income for the perjal. An organisation will prepare other comprehensive income from the all non operating activities, for the year ended December 31, 2020 I. Statement of comprehensive Income WILOHORSE INC Statement of comprehensive Income for the year enhed Decembe v 31, 2020 TAMI (1) Ant 122000 2300 Partpulars Net Income Other comprehensive Income Unrealized Holling Gain Comprehensive Income for December 31, 2020 124300 2 Stutement of comprehensive Income for the fear ended December 31, 202|| . During the 2011, the wildhouse Inc. soll the security A. Therefore we will have to calculate the profit or loss on sale of security A. Compeytyliin of realized gain or loss on sale of security A. - Particulars Net sole proceeds from sale of security Cost of security A Amt2 15400 A 1800 loss on sale of Security a (2600)

142000 WILDHORJE INC. Statement of comprehensive Income for the fear enved Dec. 312 Parbullut t ami.81 Tame (3) Net Income Other Comprehensive Income Holling Grains 49000 t: Reclassifiction Adjustment for loss included in / 2600 s1600 Net Income Comprehensive Income 193600 2300 49000 Acwmylated other comprehensive Income opening Balance of comprehensive Income as on J494quy 1, 2011 (other) Current lequ other comprehensive Income Amount Reclassified from Accumulated other compuenlnsive Income Unrepliste Holding 4917 (losing Balance of comprehensive Income aron Decemler 31,2021 Cother) 2800 51600 53900