Exercise 10-17 at December 31, 2017, the available-for-sale debt portfolio for S

Question

Exercise 10-17
at December 31, 2017, the available-for-sale debt portfolio for Sage, Inc. is as follows

Evercise 17-10 At December 31, 2017, the available for-sale dest portfollio for Sage, Inc n as folws Unrealized Gain (Loss) Security Cost Fair Value $58,375 63,125 116,150 $267,650 750s12,625) 70,700 128,775 $275,225 7.575 12.625 7575 2.020 $5, 555 Total Previous fair value adjustment balance-Dr Fair value adjustment-Dr On January 20, 2018, Sage, Inc. sold security A for $76,255. The sale proceeds are net d brokerage fees. Sageinc. reports net income in 2017 of $606,000 and in 2018 of s707,000. Total holdings (including any realized holding gain or loss) equal $202,000 in 2013 Prepare a statement of comprehensive income for 2017, starting with net income SAGE, INC Statement of Comprehensive Income For the Year Ended December 31, 2017 Prepare a statement of comprebensive income for 2018, starting with net income SAGE, TNC Statement of Comprehensive Iacome For the Year Ended December 31201

Explanation / Answer

COMPREHENSIVE INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31 , 2017 PARTICULARS AMOUNT AMOUNT Net Income $        6,06,000 Add: Opening Bal =Unrealized Gain on available for sale securities $                  2,020 Add: Unrealized Gain on available for sale securities of the year $                  5,555 $              7,575 Comprehensive income $        6,13,575 COMPREHENSIVE INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31 , 2018 PARTICULARS AMOUNT AMOUNT Net Income $        7,07,000 Add: Opening Bal =Unrealized Gain on available for sale securities $                  7,575 Add: Unrealized Gain on available for sale securities of the year $                  2,525 $            10,100 Comprehensive income $        7,17,100 Note: Caclulation of the gain or loss on holding of available for sale 2017 Security B $               70,700 Security C $            1,28,775 Total $            1,99,475 Total Value at the end of the year 2018 $            2,02,000 Excess unrealized gain for the year 2018 = $                  2,525

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