P17-10 (Gain on Sale of Investments and Comprehensive Income)
On January 1, 2014, Acker Inc. had the following balance sheet:
Acker Inc.
Balance Sheet
As of January 1, 2014
Assets						Equity
Cash				$ 50,000		Common Stock				$ 260,000
Equity Investments (available-for-sale)				240,000		Accumulated other comprehensive income				30,000
Total				$ 290,000		Total				$ 290,000
The accumulated other comprehensive income related to unrealized holding gains on available-for-sale securities. The fair value of Acker Inc.'s available-for-sale securities at December 31, 2014, was $190,000; it's cost was $140,000. No securities were purchased during the year. Acker Inc.'s Income Statement for 2014 was as follows: (Ignore income taxes.)
											Acker Inc.
Income Statement
For the Year Ended December 31, 2014
				Dividend Revenue			$ 5,000
				Gain on sale of investments			30,000
				Net Income			$ 35,000
Instructions
(Assume all transactions during the year were for cash.)
a) Prepare the journal entry to record the sale of the available-for-sale securities in 2014.
b) Prepare a statement of comprehensive income for 2014.
c) Prepare a balance sheet as of December 31, 2014.