Question
At December 31, 2017, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A$17,500$15,000$(2,500)B12,50014,0001,500C23,00025,5002,500Total$53,000$54,5001,500Previous fair value
At December 31, 2017, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows.
Security
Cost
Fair Value
Unrealized
Gain (Loss)
A$17,500$15,000$(2,500)B12,50014,0001,500C23,00025,5002,500Total$53,000$54,5001,500Previous fair value adjustment balanceDr.400Fair value adjustmentDr.$1,100
On January 20, 2018, Steffi Graf, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees.
Steffi GrafInc. reports net income in 2017 of $120,000and in 2018 of $140,000. Total holding gains (including any realized holding gain or loss) equal $40,000 in 2018.
(a)
Prepare a statement of comprehensive income for 2017, starting with net income.
STEFFI GRAF, INC
Statement of Comprehensive Income
For the Year Ended December 31, 2017
Comprehensive IncomeHolding GainsHolding LossNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainUnrealized Holding Loss
$
Comprehensive IncomeHolding GainsHolding LossNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainUnrealized Holding Loss
Comprehensive IncomeHolding GainsHolding LossNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainUnrealized Holding Loss
Comprehensive IncomeHolding GainsHolding LossNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainUnrealized Holding Loss
$
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