EXERCISE 6–4 Harvatin Group reported net income totaling $1,000,000 for the year 2006. The following is additional information obtained from the Harvatin Group’s financial reports:

The Company purchased 100,000 shares of Micron Specialists for $10 per share during the fourth quarter of 2006. The investment is accounted for as “available for sale.” The value of the shares is $9 at the end of 2006.

The Company purchased 10,000 shares of Sunswept Properties for $20 per share during the fourth quarter of 2006. The investment is accounted for as “trading” securities. The value of the shares is $22 at the end of 2006.

The company began operations in the Baltic region of Europe during the year and reports a foreign currency translation gain at the end of 2006 totaling $50,000.

The actual return on assets in its pension fund total $150,000. The expected return was $110,000.

The company has substantial prior service cost associated with its employee pension plan. As a result, the company had to record an additional minimum pension liability during the year totaling $25,000.

The company reported unrealized holding losses on derivative instruments totaling $12,000.

Required:

a. Compute comprehensive income for Harvatin Group.

b. For each item in comprehensive income, discuss balance sheet accounts affected by the item.