At December 31 2017 the availableforsale debt portfolio for

At December 31, 2017, the available-for-sale debt portfolio for Grouper, Inc. is as follows. Unrealized Gain (Loss) Security Cost Fair Value $193,375 138,125 254,150 $585,650 $165,750 154,700 281,775 $602,225 $(27,625) 16,575 27,625 16,575 4,420 $12,155 Total Previous fair value adjustment balance-Dr Fair value adjustment-Dr. On January 20, 2018, Grouper, Inc. sold security A for $166,855. The sale proceeds are net of brokerage fees. GrouperInc. reports net income in 2017 of $1,326,000 and in 2018 of $1,547,000. Total holding gains (including any realized holding gain or loss) equal $442,000 in 2018. Prepare a statement of comprehensive income for 2017, starting with net income GROUPER, INC Statement of Comprehensive Income For the Year Ended December 31, 2017

Solution

Statement of Comprehensive Income For the Year Ended December 31, 2017 net income 1326000 other comprehensive income unrealised holding gain 12155 comprehensive income 1338155 Statement of Comprehensive Income For the Year Ended December 31, 2018 net income 15,47,000 other comprehensive income Holding gain 4,42,000 add :Reclassification Adjustment for Loss Included in Net income =$193,375-$166,855 26520 4,68,520 comprehensive income 20,15,520 Accumulated Other Comprehensive Beginning Balance, January 1, 2018 12155 Current Period Other Comprehensive income 1547000 Amount Reclassified from Accumulated Other Comprehensive Income     26520 Unrealised holding gains 26,520 ending balance, Dec 31.2018 38,675