E17.9 (LO 1) (Available-for-Sale Debt Securities Entries and Financial Statement Presentation) At December 31, 2020, 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)
B	12,500	14,000	1,500
C	23,000	25,500	2,500
Total	$53,000	$54,500	1,500
Previous fair value adjustment balanceDr.			400
Fair value adjustmentDr.			$1,100

E17.10 (LO 4) (Comprehensive Income Disclosure) Assume the same information as E17.9 and that Steffi Graf, Inc. reports net income in 2020 of $120,000 and in 2021 of $140,000. Total holding gains (including any realized holding gain or loss) equal $40,000 in 2021.

Instructions

a. Prepare a statement of comprehensive income for 2020, starting with net income.

b. Prepare a statement of comprehensive income for 2021, starting with net income.