A is corrent.
Taft’s comprehensive income for year 1 is $275,000. Comprehensive income for year 1 consists of the following amounts:| Net income for year 1 | | $300,000 |
| Other comprehensive loss: | |
| Unrealized loss on available-for-sale securities | $(42,000) | |
| Translation adjustments | $ 17,000 | (25,000) |
| Comprehensive income for year 1 | | $275,000 |
The dividends paid on the common stock do not affect the amount reported for comprehensive income. Other comprehensive income (loss) is comprised of the following components.| |
| | • | Unrealized gains and loss on available-for-sale securities; |
| | • | Translation adjustments related to investments in foreign companies; |
| | • | Minimum pension liability adjustment; |
| | • | Reclassification to avoid double counting of items reported in other comprehensive income (loss) in a prior or current year that are reported in net income of the current year. |
B is incorrect. Taft’s comprehensive income for year 1 is $275,000. Comprehensive income for year 1 consists of the following amounts:
B is incorrect. Taft’s comprehensive income for year 1 is $275,000. Comprehensive income for year 1 consists of the following amounts:
B is incorrect. Taft’s comprehensive income for year 1 is $275,000. Comprehensive income for year 1 consists of the following amounts:
