The temporary investments of Catalyst Inc. only include 10,000 shares of Bristol Inc. common stock purchased on

Question:

The temporary investments of Catalyst Inc. only include 10,000 shares of Bristol Inc. purchased on January 10, 2008, for $20 per share. As of the December 31, 2008, date, assume that the share price declined to $16 per share. As of the December 31, 2009, date, assume that the share price rose to $25 per share. The investment was held through December 31, 2009. Assume a tax rate of 40%.
a. Determine the net after-tax unrealized gain or loss from holding the Bristol for 2008 and 2009.
b. What is the balance of Accumulated Other Comprehensive Income or Loss for December 31, 2008, and December 31, 2009?
c. Where is Accumulated Other Comprehensive Income or Deficit disclosed on the financial statements?

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