On January 1, 2017, Metlock, Inc. had cash and common stock of $19,5000. At that date the company had no other asset, liability or equity balances. On January 2, 2017, it purchased $175000 of equity securities for cash that it classified as available-for-sale. It received cash dividends of $13500 during the year on these securities. In addition, it had an unrealized holding gain on these securities of $33500 net of tax. Based on this information, what is the amount of comprehensive income in 2017?

Question

Ezekiel Kirk

Business

26 November, 23:28

On January 1, 2017, Metlock, Inc. had cash and common stock of $19,5000. At that date the company had no other asset, liability or equity balances. On January 2, 2017, it purchased $175000 of equity securities for cash that it classified as available-for-sale. It received cash dividends of $13500 during the year on these securities. In addition, it had an unrealized holding gain on these securities of $33500 net of tax. Based on this information, what is the amount of comprehensive income in 2017?

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Answers (1)

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Dominique Wells · Answer 1

The amount of comprehensive income in 2017 is $47000.

Explanation:

comprehensive income = dividends + unrealized holding gain on securities

= $13500 + $33500

= $47000

Therefore, the amount of comprehensive income in 2017 is $47000.