Question

E17-10 (L04) (Comprehensive Income Disclosure) Assume the same information as E17-9 and that Steffi Graf, Inc. reports

net income in 2017 of \(120,000 and in 2018 of \)140,000. Total holding gains (including any realized holding gain or loss) equal

$40,000 in 2018.

Instructions

(a) Prepare a statement of comprehensive income for 2017, starting with net income.

(b) Prepare a statement of comprehensive income for 2018, starting with net income.

Short answer

Comprehensive income on December 31, 2017, is $121,000

Comprehensive income on December 31, 2017, is $180,000

Step-by-step solution

 Statement of comprehensive income

STEFFI GRAF, SA
Statement of Comprehensive Income
For the Year Ended December 31, 2017
Net Income	$120,000
Other comprehensive income
Unrealized holding gain	$1,100
Comprehensive income	$121,100

Statement of comprehensive income

STEFFI GRAF, SA
Statement of Comprehensive Income
For the Year Ended December 31, 2018
Net Income	$140,000
Other comprehensive income
Unrealized holding gain	$40,000
Comprehensive income	$180,000
Accumulated other comprehensive income:
Beginning balance, January 1, 2018	$1,100
Current period other comprehensive income- Unrealized holding gain	$40,000
Ending Balance, December 31, 2018	$41,100