On December 31, 2013, Valur Co. had the following available-for-sale investment disclosure within the Current Assets section of the balance sheet:
Available-for-sale investments (at cost) $145,000
Plus valuation allowance for available-for-sale investments 40,000
Available-for-sale investments (at fair value) $185,000
There were no purchases or sales of available-for-sale investments during 2014. On December 31, 2014, the fair value of the available-for-sale investment portfolio was $200,000. The net income of Valur Co. was $210,000 for 2014.
Compute the comprehensive income for Valur Co. for the year ended December 31, 2014.
Answer:
VALUR CO.
For the Year Ended December 31, 2014
Net income $210,000
Other comprehensive income (loss):
Unrealized gain on available-for-sale investments* 15,000
Comprehensive income $225,000
* $200,000 – $185,000
Available-for-sale investments (at cost) $145,000
Plus valuation allowance for available-for-sale investments 40,000
Available-for-sale investments (at fair value) $185,000
There were no purchases or sales of available-for-sale investments during 2014. On December 31, 2014, the fair value of the available-for-sale investment portfolio was $200,000. The net income of Valur Co. was $210,000 for 2014.
Compute the comprehensive income for Valur Co. for the year ended December 31, 2014.
Answer:
VALUR CO.
For the Year Ended December 31, 2014
Net income $210,000
Other comprehensive income (loss):
Unrealized gain on available-for-sale investments* 15,000
Comprehensive income $225,000
* $200,000 – $185,000
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