Question

Roxanne Carter Corp. reported the following for 2014: net sales $1,200,000; COGS $750,000; selling and administrative expenses $320,000; and an unrealized holding gain on available-for-sale securities $18,000.



Prepare a statement of comprehensive income, using (a) the one statement format, and (b) the two statement format. (Ignore income taxes and EPS).

Answer 1

Answer:

unrealized holding gain = $18,000

income is $148000

Explanation:

given data

net sales = $1,200,000

COGS = $750,000

selling and administrative expenses = $320,000

unrealized holding gain = $18,000

solution

we get here comprehensive income as that

income = sales - COGS - sale and administrative expenses +  unrealized holding gain    ................1

income = $1,200,000 - $750,000 - $320,000 +  $18,000

income = $1,48,000

and

income from other format

income = sales - COGS - sale and administrative expenses   ....2

income = $1,200,000 - $750,000 - $320,000  

income = $130000

so

unrealized holding gain = $18,000

income is $148000