question archive On April 23, 2012, Frost Co
On April 23, 2012, Frost Co
Subject:FinancePrice:2.89 Bought3
On April 23, 2012, Frost Co. purchased 1,500 shares of Apex, Inc., for $88 per share including the brokerage commission. The Apex investment was classified as an available-for-sale security. On December 31, 2012, the fair value of Apex, Inc., was $101 per share. The net income of Frost Co. was $60,000 for 2012.
Compute the comprehensive income for Frost Co. for the year ended December 31, 2012.
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FROST CO.
Statement of Comprehensive Income
For the Year Ended December 31, 2012
Net income.................................................................................................... $60,000
Other comprehensive income (loss):
Unrealized gain on available-for-sale investments............................... 19,500*
Comprehensive income................................................................................. $79,500
*1,500 shares × ($101 per share - $88 per share)
