question archive On December 31, 2011, Memphis Co
On December 31, 2011, Memphis Co
Subject:FinancePrice:2.89 Bought3
On December 31, 2011, Memphis Co. had the following available-for-sale investment disclosure within the Current Assets section of the balance sheet:
Available-for-sale investments (at cost)...............$105,000
Plus valuation allowance for available-for-sale investments........ 15,000
Available-for-sale investments (at fair value) ............$120,000
There were no purchases or sales of available-for-sale investments during 2012. On December 31, 2012, the fair value of the available-for-sale investment portfolio was $94,000. The net income of Memphis Co. was $150,000 for 2012.
Compute the comprehensive income for Memphis Co. for the year ended December 31, 2012.
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MEMPHIS CO.
Statement of Comprehensive Income
For the Year Ended December 31, 2012
Net income.................................................................................................. $150,000
Other comprehensive income (loss):
Unrealized loss on available-for-sale investments.............................. (11,000)*
Comprehensive income............................................................................... $139,000
*$94,000 - $105,000
