Robinson Industries reported the following statement of shareholders’ equity for the year ended 31 December 20X7:

Required:
1. What is the nature of AOCI? Where does it appear in the financial statements?
2. Earnings were $1,980. How much is comprehensive income?
3. What amount was paid to retire common shares during the year?
4. What amount was paid to retire preferred shares during the period? Why is there a deduction from contributed capital and also from retained earnings?
5. Costs associated with share issuance have been deducted from retained earnings. What other alternative could the company have considered?
6. What is the nature of the stock dividend? What are the alternatives for recording such a dividend?

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Balance, January 1, 20X7 Issuance of common shares for cash Retirement of common shares Costs associated with equity issue Stock dividend Comprehensive income Retirement of preferred shares Balance, 31 December 20X7 Common Preferred Share Share Capital Capital $5,992 7,650 (1,005) 247 $12,884 $3,500 (630) $2,870 Other Contributed Capital Retained (all sources) Earnings $1,202 $ 775 (356) (116) $ 730 (124) (247) 1,980 (35) $2,349 AOCI: Unrealized Gains, Investments $48 13 $61