Investment Company (IC)began operations on January 1,2016.It acquired the following investments:

IC earned interest of $12,000 during 2016.Dividends of $16,000 were declared on the shares it owned during 2016.Of that amount,$9,000 was received in December 2016 and $7,000 was received in January 2017 (note that the ex-dividend date for these shares was prior to the end of the year).How much would be recorded as accumulated other comprehensive income on IC's balance sheet at December 31,2016?
A)$10,000 gain.
B)$10,000 loss.
C)$30,000 gain.
D)$30,000 loss.

Question

Investment Company (IC)began operations on January 1,2016.It acquired the following investments:

IC earned interest of $12,000 during 2016.Dividends of $16,000 were declared on the shares it owned during 2016.Of that amount,$9,000 was received in December 2016 and $7,000 was received in January 2017 (note that the ex-dividend date for these shares was prior to the end of the year).How much would be recorded as accumulated other comprehensive income on IC's balance sheet at December 31,2016?
A)$10,000 gain. 
B)$10,000 loss. 
C)$30,000 gain. 
D)$30,000 loss.

Quizplus · Accepted Answer

A)$70,000 - $60,000 = $10,000 gain

Investment Company (IC)began Operations on January 1,2016