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ID: 2444785 • Letter: W
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The following information is available for Irwin Company for 2015:Net Income $124,000 Realized gain on sale of available-for-sale securities 8,000 Unrealized holding gain arising during the period on available-for-sale securities 36,000 Reclassification adjustment for gains included in net income 7,500
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Explanation / Answer
Comprehensive Income = Net Income + Other Comprehensive Income
Other Comprehensive Income :
Unrealized holding gain arising during the period on available-for-sale securities = 36000
less: Reclassification adjustment for gains included in net income = 7500
Other Comprehensive Income = 36000-7500 = $28500
Note: realised gain should be excluded from other comprehensive income and added to net Income or loss.
Here the net Income becomes 124000 + 8000 = $132000
Comprehensive Income = 132000 + 28500 = $160500
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