Statement of Comprehensive Income
Svedin Incorporated provides the following information relating to 2008:
Net income |
$17,650 |
Unrealized losses on available for sale securities |
1,285 |
Foreign currency translation adjustment |
287 |
Minimum pension liability adjustment |
315 |
The foreign currency adjustment resulted from a weakening in the currencies of Svedin’s foreign subsidiaries relative to the U.S. dollar. The minimum pension liability adjustment required an increase in the pension liability with a resulting decrease in equity.
(Note: These items represent the results of events occurring during 2008, not the cumulative result of events in prior years.)
1. Determine the effect that each of these items would have when computing comprehensive income for 2008. Explain your rationale.
2. Prepare a statement of comprehensive income for Svedin Incorporated for 2008.