Question - At December 31, 2017, the available-for-sale debt portfolio for Splish, Inc. is as follows.
|
Security
|
Cost
|
Fair Value
|
Unrealized
Gain (Loss)
|
|
A
|
$18,375
|
$15,750
|
$(2,625)
|
|
B
|
13,125
|
14,700
|
1,575
|
|
C
|
24,150
|
26,775
|
2,625
|
|
Total
|
$55,650
|
$57,225
|
1,575
|
|
Previous fair value adjustment balance-Dr.
|
420
|
|
Fair value adjustment-Dr.
|
$1,155
|
On January 20, 2018, Splish, Inc. sold security A for $15,855. The sale proceeds are net of brokerage fees.
SplishInc. reports net income in 2017 of $126,000 and in 2018 of $147,000. Total holding gains (including any realized holding gain or loss) equal $42,000 in 2018.
Required -
1. Prepare a statement of comprehensive income for 2017, starting with net income.
2. Prepare a statement of comprehensive income for 2018, starting with net income.