Question 15

At December 31, 2017, the available-for-sale debt portfolio for Stellar, Inc. is as follows.

Security		Cost		Fair Value		Unrealized Gain (Loss)
A		$158,375		$135,750		$(22,625	)
B		113,125		126,700		13,575
C		208,150		230,775		22,625
Total		$479,650		$493,225		13,575
Previous fair value adjustment balanceDr.						3,620
Fair value adjustmentDr.						$9,955

On January 20, 2018, Stellar, Inc. sold security A for $136,655. The sale proceeds are net of brokerage fees. StellarInc. reports net income in 2017 of $1,086,000 and in 2018 of $1,267,000. Total holding gains (including any realized holding gain or loss) equal $362,000 in 2018.

Prepare a statement of comprehensive income for 2017, starting with net income.

STELLAR, 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				$

Prepare a statement of comprehensive income for 2018, starting with net income.

STELLAR, INC Statement of Comprehensive Income For the Year Ended December 31, 2018
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		$
AddLess : 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				$
Ending Balance, December 31, 2018Amount Reclassified from Accumulated Other Comprehensive IncomeUnrealized Holding GainAccumulated Other Comprehensive IncomeBeginning Balance, January 1, 2018Current Period Other Comprehensive income
Beginning Balance, January 1, 2018Current Period Other Comprehensive incomeUnrealized Holding GainAccumulated Other Comprehensive IncomeAmount Reclassified from Accumulated Other Comprehensive IncomeEnding Balance, December 31, 2018				$
Unrealized Holding GainBeginning Balance, January 1, 2018Ending Balance, December 31, 2018Current Period Other Comprehensive incomeAmount Reclassified from Accumulated Other Comprehensive IncomeAccumulated Other Comprehensive Income		$
Beginning Balance, January 1, 2018Accumulated Other Comprehensive IncomeUnrealized Holding GainCurrent Period Other Comprehensive incomeEnding Balance, December 31, 2018Amount Reclassified from Accumulated Other Comprehensive Income
Current Period Other Comprehensive incomeBeginning Balance, January 1, 2018Ending Balance, December 31, 2018Amount Reclassified from Accumulated Other Comprehensive IncomeUnrealized Holding GainAccumulated Other Comprehensive Income
Current Period Other Comprehensive incomeAmount Reclassified from Accumulated Other Comprehensive IncomeUnrealized Holding GainAccumulated Other Comprehensive IncomeEnding Balance, December 31, 2018Beginning Balance, January 1, 2018				$