During 2006, Cosby Corporation held a portfolio of available-for-sale securities having a cost of $260,000. There were no purchases or sales of investments during the year. The market values after adjusting for the impact of taxes, at the beginning and end of the year, were $200,000 and $240,000, respectively. The net income for 2006 was $145,000, and no dividends were paid during the year. The Stockholders’ Equity section of the balance sheet was as follows on December 31, 2005: a. Prepare a statement of comprehensive income for 2006. b. Prepare the Stockholders’ Equity section of the balance sheet for December 31, 2006.
During 2006, Cosby Corporation held a portfolio of available-for-sale securities having a cost of $260,000. There were no purchases or sales of investments during the year. The market values after adjusting for the impact of taxes, at the beginning and end of the year, were $200,000 and $240,000, respectively. The net income for 2006 was $145,000, and no dividends were paid during the year. The Stockholders’ Equity section of the balance sheet was as follows on December 31, 2005: a. Prepare a statement of comprehensive income for 2006. b. Prepare the Stockholders’ Equity section of the balance sheet for December 31, 2006.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During 2006, Cosby Corporation held a portfolio of available-for-sale securities having a cost of $260,000. There were no purchases or sales of investments during the year. The market values after adjusting for the impact of taxes, at the beginning and end of the year, were $200,000 and $240,000, respectively. The net income for 2006 was $145,000, and no dividends were paid during the year. The Stockholders’ Equity section of the balance sheet was as follows on December 31, 2005:
a. Prepare a statement of comprehensive income for 2006.
b. Prepare the Stockholders’ Equity section of the balance sheet for December 31, 2006.
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