Accumulated Other Comprehensive Income
Refer to Practice 13 20. Compute the balance in (1) Retained Earnings and (2) Accumulated
Other Comprehensive Income as of the end of each year: 2006, 2007, 2008.
Practice 13 20
Comprehensive Income
The company started business on January 1, 2006. Net income and dividends for the first three years of the company’s existence are as follows:
|
Net Income (Loss) |
Dividends |
|
|
2006 |
($1,000) |
$0 |
|
2007 |
400 |
100 |
|
2008 |
1,700 |
300 |
The company has some foreign subsidiaries and also maintains a portfolio of available for sale securities. During 2006, 2007, and 2008, the U.S. dollar value of the equity of the foreign subsidiaries and the market value of the securities in the available for sale portfolio fluctuated as follows:
|
Change in U.S. Dollar Value |
Change in Value of Portfolio |
|
|
2006 |
Increase of $350 |
Decrease of $1,100 |
|
2007 |
Decrease of $800 |
Decrease of $600 |
|
2008 |
Decrease of $170 |
Increase of $420 |
Compute comprehensive income for each of the three years: 2006, 2007, and 2008.