(L.O. 8) Comprehensive income includes all of the following except:

a. unrealized holding losses.

b. dividends declared and paid.

c. interest income.

d. gains on disposal of assets.

Approach and Explanation: Define comprehensive income before reading the answer selections.

Then analyze each answer selection to see how it relates to the definition. Comprehensive income includes all changes in stockholders’ equity except those resulting from investments by owners and distributions to owners. Dividends declared and paid are a distribution to owners. Dividends received would be a component of comprehensive income. (Solution = b.)