On January 1, 2014, Rocket Corp. had cash and common shares of$60,000. At that date, the company had no other asset, liability, or shareholders' equity balances. On January 2, 2014, Rocket paid 540,000 cash for equity securities that it designated as fair value through other comprehensive income (FV-OCI) investments. During the year,
Rocket received non-taxable cash dividends of $ 18,000 and had an unrealized holding gain of $25,000 (net of tax) on these securities. Determine the following amounts for 2014:
(a) Net income,
(b) Other comprehensive income,
(c) Comprehensive income, and
(d) Accumulated other comprehensive income (as at the end of 20 14).

  • CreatedSeptember 18, 2015
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