Question

Norton Co. had the following amounts related to its pension plan in 2017. Actuarial liability loss for 2017 \(28,000 Unexpected asset gain for 2017 18,000 Accumulated other comprehensive income (G/L) (beginning balance) 7,000 Cr. Determine for 2017 (a) Norton’s other comprehensive income (loss) and (b) comprehensive income. Net income for 2017 is \)26,000; no amortization of gain or loss is necessary in 2017.

Short answer

Comprehensive loss is a term used when the owner of an organization suffers a loss of moneydue to variation or fluctuations in the financial market. The amount of the organization’snet assets decreases.

Step-by-step solution

(a)Computation of Norton’s other comprehensive income/loss.

Particulars	Amount
Actuarial liability loss	($28,000)
Add: Unexpected asset gain	$18,000
Other comprehensive loss	($10,000)

(b) Computation of Norton’s comprehensive income.

Particulars	Amount
Net Income	$26,000
Less: Other comprehensive loss	$10,000
Comprehensive Income	$16,000