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Question
LM, Inc., reported net income for the year ending December 31 of $483,500. Dividends paid during the year totaled $52,900. The company holds available-for-sale securities with an original cost of $162,000 and a fair value of $181,000 at the end of the year. It also holds trading securities with an original cost of $150,000 and a fair value of $147,000. Retained earnings on January 1 was $736,400, and accumulated other comprehensive income on January 1 was $16,200.
Compute the following balances to be reported in the financial statements dated December 31:
a. Valuation allowance for available-for-sale securities
b. Comprehensive income
c. Retained earnings
d. Accumulated other comprehensive income
Answer
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