On January 1, 2020, 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, 2020, it purchased $160,000 of equity securities for cash that it classified as available-for-sale.It received cash dividends of $12,000 during the year on these securities.In addition, it had an unrealized holding gain on these securities of $32,000, net of tax.Based on this information, what is the amount of comprehensive income in 2020?

Question

Quizplus · Accepted Answer

Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. In this case, comprehensive income includes both the cash dividends received ($12,000) and the unrealized holding gain on the available-for-sale securities ($32,000), totaling $44,000.

On January 1, 2020, Tri-State Industries Had Cash and Common