Which of the following items is not included in the calculation of net income but is included in the calculation of comprehensive income?
A)Unrealized holding gain on available-for-sale marketable securities
B)Unrealized holding gain on trading marketable securities
C)Gain from early extinguishments of bonds
D)Gain arising from sale of available-for-sale marketable securities

Question

Quizplus · Accepted Answer

Unrealized holding gains on available-for-sale marketable securities are included in comprehensive income but not in net income. Net income includes realized gains and losses, while comprehensive income includes both realized and unrealized gains and losses, among other items. Unrealized gains on trading securities are recognized in net income, gains from early extinguishments of bonds are included in net income, and gains arising from the sale of available-for-sale marketable securities are also included in net income once realized.

Which of the Following Items Is Not Included in the Calculation