Jack's by the Tracks has the following partial balance sheet: JACK'S BY THE TRACKS
Balance Sheet (partial)
$\begin{array}{lr}
\text { Stockholders' Equity: }&\
\text { Common Stock }&\$6,000,000\
\text {Retained Earnings }&2,000,000\
\text { Total Paid-in capital and retained earnings }&8,000,000\
\text {Add: Unrealized gain on available-for-sale securities }&800,000\
\text { Total Stockholders' Equity:}&\$8,800,000\
\end{array}$
What effect will the unrealized gain on available-for-sale securities have on comprehensive income?

Question

Jack's by the Tracks has the following partial balance sheet: JACK'S BY THE TRACKS
Balance Sheet (partial)
$\begin{array}{lr}
\text { Stockholders' Equity: }&\
\text { Common Stock }&\$6,000,000\
\text {Retained Earnings }&2,000,000\
\text { Total Paid-in capital and retained earnings }&8,000,000\
\text {Add: Unrealized gain on available-for-sale securities  }&800,000\
\text {  Total Stockholders' Equity:}&\$8,800,000\
\end{array}$
 What effect will the unrealized gain on available-for-sale securities have on comprehensive income?

Quizplus · Accepted Answer

Unrealized gains on available-for-sale securities are included in comprehensive income but not in net income.

Jack's by the Tracks Has the Following Partial Balance Sheet