Ask Question
18 January, 05:17

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.

+3
Answers (1)
  1. 18 January, 05:34
    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.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Burns Corp. had the following items: Sales revenue $45,000 Loss on early extinguishment of bonds 36,000 Realized gain on sale of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers