On January 1, 2017, Pina Inc. had cash and common stock of $62,320. At that date
ID: 2524873 • Letter: O
Question
On January 1, 2017, Pina Inc. had cash and common stock of $62,320. At that date, the company had no other asset, liability, or equity balances. On January 2, 2017, it purchased for cash $23,780 of debt securities that it classified as available-for-sale. It received interest of $4,230 during the year on these securities. In addition, it has an unrealized holding gain on these securities of $5,080 net of tax. Determine the following amounts for 2017: (a) net income, (b) comprehensive income, (c) other comprehensive income, and (d) accumulated other comprehensive income (end of 2017). (a) Net income $ (b) Comprehensive income $ (c) Other comprehensive income $ (d) Accumulated other comprehensive income $
Explanation / Answer
(a) Net income $4230 (b) Comprehensive income = 4230+5080= $9310 (c) Other comprehensive income $5080 (d) Accumulated other comprehensive income $5080