D is corrent. Comprehensive income is net income plus or minus unrealized gains and losses that are recognized in comprehensive income for the period. Net income is equal to $110,000 ($800,000 – $600,000 – $90,000). An unrealized holding gain on available-for-sale securities is classified as other comprehensive income. Therefore, this answer is correct because comprehensive income is calculated as net income of $110,000 plus the $30,000 unrealized holding gain on available-for-sale securities, which equals $140,000.
A is incorrect. Comprehensive income is net income plus or minus unrealized gains and losses that are recognized in comprehensive income for the period. Net income is equal to $110,000 ($800,000 – $600,000 – $90,000). An unrealized holding gain on available-for-sale securities is classified as other comprehensive income. Therefore, comprehensive income is calculated as net income of $110,000 plus the $30,000 unrealized holding gain on available-for-sale securities, which equals $140,000.
B is incorrect. Comprehensive income is net income plus or minus unrealized gains and losses that are recognized in comprehensive income for the period. Net income is equal to $110,000 ($800,000 – $600,000 – $90,000). An unrealized holding gain on available-for-sale securities is classified as other comprehensive income. Therefore, comprehensive income is calculated as net income of $110,000 plus the $30,000 unrealized holding gain on available-for-sale securities, which equals $140,000.
C is incorrect. Comprehensive income is net income plus or minus unrealized gains and losses that are recognized in comprehensive income for the period. Net income is equal to $110,000 ($800,000 – $600,000 – $90,000). An unrealized holding gain on available-for-sale securities is classified as other comprehensive income. Therefore, comprehensive income is calculated as net income of $110,000 plus the $30,000 unrealized holding gain on available-for-sale securities, which equals $140,000.
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