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On January 1, 2011, Zhang Inc. had cash and share capital of ¥5,000,000. At that date, the company had no other asset, liability, or equity balances. On January 5, 2011, it purchased for cash ¥3,000,000 of equity securities that it classified as available-for-sale. It received cash dividends of ¥400,000 during the year on these securities. In addition, it has an unrealized loss on these securities of ¥300,000. The tax rate is 20%. Compute the amount of comprehensive income. a. ¥100,000 b. ¥80,000 C. ¥320,000 d. ¥300,000 can you explain why the answer is b $80,000?

On January 1, 2011, Zhang Inc. had cash and share capital of ¥5,000,000. At that date, the company had no other asset, liability, or equity balances. On January 5, 2011, it purchased for cash ¥3,000,000 of equity securities that it classified as available-for-sale. It received cash dividends of ¥400,000 during the year on these securities. In addition, it has an unrealized loss on these securities of ¥300,000. The tax rate is 20%. Compute the amount of comprehensive income. a. ¥100,000 b. ¥80,000 C. ¥320,000 d. ¥300,000 can you explain why the answer is b $80,000?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2011, Zhang Inc. had cash and share capital of ¥5,000,000. At that date, the company had no other asset, liability, or equity balances. On January 5, 2011, it purchased for cash ¥3,000,000 of equity securities that it classified as available-for-sale. It received cash dividends of ¥400,000 during the year on these securities. In addition, it has an unrealized loss on these securities of ¥300,000. The tax rate is 20%. Compute the amount of comprehensive income. a. ¥100,000 b. ¥80,000 C. ¥320,000 d. ¥300,000 can you explain why the answer is b $80,000?
Transcribed Image Text:On January 1, 2011, Zhang Inc. had cash and share capital of ¥5,000,000. At that date, the company had no other asset, liability, or equity balances. On January 5, 2011, it purchased for cash ¥3,000,000 of equity securities that it classified as available-for-sale. It received cash dividends of ¥400,000 during the year on these securities. In addition, it has an unrealized loss on these securities of ¥300,000. The tax rate is 20%. Compute the amount of comprehensive income. a. ¥100,000 b. ¥80,000 C. ¥320,000 d. ¥300,000 can you explain why the answer is b $80,000?
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