Question: At December 31, 2017, the available-for-sale debt portfolio for Teal, Inc. is as follows. Prepare a statement of comprehensive income for 2017, starting with net income.
| Security |
cost |
fair value |
unrealized gain (loss) |
| A |
$167,125 |
$143,250 |
($23,875) |
| B |
$119,375 |
$133,700 |
$14,325 |
| C |
$219,650 |
$243,525 |
$23,875 |
| TOTAL |
$506,150 |
$520,475 |
$14,325 |
| Previous fair value adj-Dr. |
|
|
$3,820 |
| FAIR VALUE ADJ-Dr. |
|
|
$10,505 |
On January 20, 2018, Teal, Inc. sold security A for $144,205. The sale proceeds are net of brokerage fees.
TealInc. reports net income in 2017 of $1,146,000 and in 2018 of $1,337,000. Total holding gains (including any realized holding gain or loss) equal $382,000 in 2018.