On January 1, 2020, Pepper Corp. had cash and common shares of $60,000. At that date, the company had no other asset, liability, or shareholders' equity balances. On January 2, 2020, Pepper paid $40,000 cash for equity securities that it designated as fair value through other comprehensive income (FV-OCI) investments. During the year, Pepper received non-taxable cash dividends of $18,000 and had an unrealized holding gain of $25,000 (net of tax) on these securities. Required Determine the following amounts for 2020: Net income Other comprehensive income Comprehensive income Accumulated other comprehensive income (as at the end of 2020)
On January 1, 2020, Pepper Corp. had cash and common shares of $60,000. At that date, the company had no other asset, liability, or shareholders' equity balances. On January 2, 2020, Pepper paid $40,000 cash for equity securities that it designated as fair value through other comprehensive income (FV-OCI) investments. During the year, Pepper received non-taxable cash dividends of $18,000 and had an unrealized holding gain of $25,000 (net of tax) on these securities. Required Determine the following amounts for 2020: Net income Other comprehensive income Comprehensive income Accumulated other comprehensive income (as at the end of 2020)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Pepper Corp. had cash and common shares of $60,000. At that date, the company had no other asset, liability, or shareholders' equity balances. On January 2, 2020, Pepper paid $40,000 cash for equity securities that it designated as fair value through other comprehensive income (FV-OCI) investments. During the year, Pepper received non-taxable cash dividends of $18,000 and had an unrealized holding gain of $25,000 (net of tax) on these securities.
Required
Determine the following amounts for 2020:
- Net income
- Other comprehensive income
- Comprehensive income
- Accumulated other comprehensive income (as at the end of 2020)
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