Harvatin Group reported net income totaling $1,000,000 for the year 2006. The following is additional information obtained from the Harvatin Group's financial reports:
The Company purchased 100,000 shares of Micron Specialists for $10 per share during the fourth quarter of 2006.The investment is accounted for as" available for sale."The value of the shares is $9 at the end of 2006.
The Company purchased 10,000 shares of Sunswept Properties for $20 per share during the fourth quarter of 2006. The investment is accounted for as" trading" securities. The value of the shares is $22 at the end of 2006.
The company began operations in the Baltic region of Europe during the year and reports a foreign currency translation gain at the end of 2006 totaling $50,000.
The decrease in the net pension assets for the year was $175,000. However, the periodic pension expense reported in the income statement was only $100,000.
The company reported unrealized holding losses on derivative instruments totaling $12,000.Required:
a. Compute comprehensive income for Harvatin Group.
b. For each item in comprehensive income, discuss balance sheet
accounts affected by the item.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...