At December 31, 2020, the available-for-sale debt portfolio for Ivanhoe, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,100 $14,200 $(2,900) B 11,800 15,300 3,500 C 22,000 25,600 3,600 Total $50,900 $55,100 4,200 Previous fair value adjustment balance—Dr. 300 Fair value adjustment—Dr. $3,900 On January 20, 2021, Ivanhoe, Inc. sold security A for $14,300. The sale proceeds are net of brokerage fees. Ivanhoe, Inc. reports net income in 2020 of $117,000 and in 2021 of $141,000. Total holding gains (including any realized holding gain or loss) equal $42,000 in 2021. 1. Prepare a statement of comprehensive income for 2020, starting with net income. 2. Prepare a statement of comprehensive income for 2021, starting with net income.
At December 31, 2020, the available-for-sale debt portfolio for Ivanhoe, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,100 $14,200 $(2,900) B 11,800 15,300 3,500 C 22,000 25,600 3,600 Total $50,900 $55,100 4,200 Previous fair value adjustment balance—Dr. 300 Fair value adjustment—Dr. $3,900 On January 20, 2021, Ivanhoe, Inc. sold security A for $14,300. The sale proceeds are net of brokerage fees. Ivanhoe, Inc. reports net income in 2020 of $117,000 and in 2021 of $141,000. Total holding gains (including any realized holding gain or loss) equal $42,000 in 2021. 1. Prepare a statement of comprehensive income for 2020, starting with net income. 2. Prepare a statement of comprehensive income for 2021, starting with net income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At December 31, 2020, the available-for-sale debt portfolio for Ivanhoe, Inc. is as follows.
On January 20, 2021, Ivanhoe, Inc. sold security A for $14,300. The sale proceeds are net of brokerage fees.
Ivanhoe, Inc. reports net income in 2020 of $117,000 and in 2021 of $141,000. Total holding gains (including any realized holding gain or loss) equal $42,000 in 2021.
|
Security
|
Cost
|
Fair Value
|
Unrealized
Gain (Loss) |
||||
| A | $17,100 | $14,200 | $(2,900) | ||||
| B | 11,800 | 15,300 | 3,500 | ||||
| C | 22,000 | 25,600 | 3,600 | ||||
| Total | $50,900 | $55,100 | 4,200 | ||||
| Previous fair value adjustment balance—Dr. | 300 | ||||||
| Fair value adjustment—Dr. | $3,900 |
On January 20, 2021, Ivanhoe, Inc. sold security A for $14,300. The sale proceeds are net of brokerage fees.
Ivanhoe, Inc. reports net income in 2020 of $117,000 and in 2021 of $141,000. Total holding gains (including any realized holding gain or loss) equal $42,000 in 2021.
1. Prepare a statement of comprehensive income for 2020, starting with net income.
2. Prepare a statement of comprehensive income for 2021, starting with net income.
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