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1 May, 02:11

Burns Corp. had the following items:

Sales revenue $45,000

Loss on early extinguishment of bonds 36,000

Realized gain on sale of available-for-sale securities 28,000

Unrealized holding loss on available-for-sale securities 17,000

Loss on write-down of inventory 3,100

Which of the following amounts would the statement of comprehensive income report as other comprehensive income or loss?

A. $11,000 other comprehensive income.

B. $16,900 other comprehensive income.

C. $17,000 other comprehensive loss.

D. $28,100 other comprehensive loss.

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Answers (1)
  1. 1 May, 06:11
    0
    Option D is correct because the only item that relates to Income statement is Sales Revenue of $45000 and the remainder transactions net effect must go to Comprehensive Income statement.

    Net effect = - $36k + $28k - $17k - $3.1k = $28.1 Loss

    This net effect realized during the year in the Comprehensive Income statement because these transaction does not directly relate to core operation of the entity.
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