Question
At December 31, 2020, the available-for-sale debt portfolio for Cullumber, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,600 $14,200 $(3,400
At December 31, 2020, the available-for-sale debt portfolio for Cullumber, Inc. is as follows.
| Security | Cost | Fair Value | Unrealized Gain (Loss) | ||||
| A | $17,600 | $14,200 | $(3,400 | ) | |||
| B | 11,000 | 14,800 | 3,800 | ||||
| C | 23,400 | 26,300 | 2,900 | ||||
| Total | $52,000 | $55,300 | 3,300 | ||||
| Previous fair value adjustment balanceDr. | 300 | ||||||
| Fair value adjustmentDr. | $3,000 | ||||||
On January 20, 2021, Cullumber, Inc. sold security A for $14,300. The sale proceeds are net of brokerage fees. Cullumber, Inc. reports net income in 2020 of $123,000 and in 2021 of $143,000. Total holding gains (including any realized holding gain or loss) equal $40,000 in 2021.
(a)
Prepare a statement of comprehensive income for 2020, starting with net income.
| CULLUMBER, INC Statement of Comprehensive Income December 31, 2020For the Year Ended December 31, 2020For the Month Ended December 31, 2020 | ||||
| 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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