Exercise 17B-10 (Part Level Submission) At December 31, 2017, the available-for-

Question

Exercise 17B-10 (Part Level Submission) At December 31, 2017, the available-for-sale debt portfolio for Blossom, Inc. is as follows Unrealized Gain (Loss) Security Cost Fair Value $18,375 13,125 24,150 $55,650 $15,750 14,700 26,775 $57,225 $(2,625) 1,575 2,625 1,575 420 $1,155 Total Previous fair value adjustment balance-Dr Fair value adjustment-Dr On January 20, 2018, Blossom, Inc. sold secunity A for $15,855. The sale proceeds are net of brokerage fees BlossomInc, reports net income in 2017 of $126,000 and in 2018 of $147,000. Total holding gains (including any realized holding gain or loss) equal $42,000 in 2018. (a) Your answer is correct.

Explanation / Answer

Statement of Comprehensive Income Net Income $147,000 Other Comprehensive Income Holding Gain $42,000 Add: Reclassification adjustment for loss included in net income 2520 $44,520 (15855-18375) Comprehensive Income $191,520 Accumulated Other Comprehensive Income beginning Balance , Jan 1 2018 1575 Current period Other comprehensive Income $42,000 Amt reclassified from accumulated other comprehensive Income 2520 Unrealized holding gain $44,520 Ending balance, 31 De 2018 $46,095 If any doubt please comment

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