The following information relates to Windom Company for 2015: Windom's 2015 other comprehensive income is

Question

The following information relates to Windom Company for 2015:  Windom's 2015 other comprehensive income is

Quizplus · Accepted Answer

The total comprehensive income for 2015 is calculated as follows:

Net Income = $500,000
Unrealized gain on available-for-sale securities = $20,000
Unrealized gain on derivative instrument = $40,000
Unrealized loss on foreign currency translation = ($10,000)

Total other comprehensive income = $20,000 + $40,000 - $10,000 = $50,000

Comprehensive income = $500,000 + $50,000 = $550,000

Therefore, Windom's 2015 other comprehensive income is $70,000 (Comprehensive income of $550,000 minus Net income of $500,000).

The Following Information Relates to Windom Company for 2015