On January 1, 2014, Tri-State Industries had cash and common stock of $180,000. At that date the company had no other asset, liability or equity balances. On January 2, 2014, it purchased $160,000 of equity securities for cash that it classified as available-for-sale. It received cash dividends of $9,000 during the year on these securities. In addition, it had an unrealized holding gain on these securities of $24,000 net of tax. Based on this information, what is the amount of comprehensive income in 2014?

Question

Quizplus · Accepted Answer

Comprehensive income includes both net income and other comprehensive income. The cash dividends of $9,000 are part of net income, and the unrealized holding gain of $24,000 is part of other comprehensive income. Therefore, comprehensive income is $9,000 + $24,000 = $33,000.

On January 1, 2014, Tri-State Industries Had Cash and Common