Financial 8th Edition and Intermediate Accounting 16th Edition, WileyPLUS Custom

Question

Financial 8th Edition and Intermediate Accounting 16th Edition, WileyPLUS Custom Course for St. John's University INTERM actice Assignment Gradebook ORION nment Exercise 17B-10 (Part Level Subnission) At December 31, 2017, the available-for-sale debt portfolio for Blossom, Inc. is as follows. Unrealized Gain (Loss) Security Cost Fair Value $18,375 13,125 24,150 $55,650 $15,750 14,700 26,775 $57,225 $(2,625) 1,575 2,625 1,575 420 $1,155 Total Previous fair value adjustment balance-Dr. Fair value adjustment-Dr On January 20, 2018, Blossom, Inc. sold security A for $15,855. The sale proceeds are net of brokerage fees. BlossomInc. 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. (a) Your answer is correct.

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Statement of Comprehensive Income Net Income $147,000 Other Comprehensive Income Holding Gain $42,000 Add: Reclassification adjustment for loss included in net income 2520 $44,520 (15855-18375) Comprehensive Income $191,520 Accumulated Other Comprehensive Income beginning Balance , Jan 1 2018 1575 Current period Other comprehensive Income $42,000 Amt reclassified from accumulated other comprehensive Income 2520 Unrealized holding gain $44,520 Ending balance, 31 De 2018 $46,095

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