Respuesta :
a. The other comprehensive income for 2017 is $-11.2 million
b. The comprehensive income of 2017 is $1,293.8 million
What is meant by comprehensive income?
Unrealized gains or losses on financial instruments used as hedges or derivatives as well as gains or losses from currency exchange transactions are included in comprehensive income together with net income. It offers a comprehensive understanding of a company's income that the income statement does not entirely reflect.
c. The accumulated other comprehensive income on December 31, 2017 is $45.2 million
a. According to the given data the company incurred a loss of $11.2 million as an unrealized income from available-for-sale debt securities. It is the actual loss.
Therefore, other comprehensive income is (-$11.2) million.
b. To calculate the Comprehensive income for 2017 we would have to use the following formula:
Comprehensive income=Net income − Unrealized holding loss
=$1,305 million−$11.2million
=$1,293.8 million
So, comprehensive income for 2017 is $1,293.8 million
c. In order to Calculate the accumulated other comprehensive income we would have to use the following formula:
Accumulated comprehensive income = Existing income − Unrealized holding loss
=$56.4million−$11.2million
=$45.2million
The Accumulated other comprehensive income on December 31, 2017 is $45.2 million
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The complete question is:
The following information relates to Wildhorse Co. for the year ended December 31, 2020: net income $1,305 million; unrealized holding loss of $11.2 million related to available-for-sale debt securities during the year; accumulated other comprehensive income of $56.4 million on December 31, 2019. Assuming no other changes in accumulated other comprehensive income.
Determine:
a. Other comprehensive income for 2017
b. Comprehensive income for 2017.
c. Accumulated other comprehensive income at December 31, 2017.
