On January 1, 2012, Richards Inc. had cash and common stock of $60,000. At that date, the

Question:

On January 1, 2012, Richards Inc. had cash and of $60,000. At that date, the company had no other asset, liability, or equity balances. On January 2, 2012, it purchased for cash $20,000 of equity securities that it classified as available-for-sale. It received cash dividends of $3,000 during the year on these securities. In addition, it has an unrealized holding gain on these securities of $4,000 net of tax. Determine the following amounts for 2012:
(a) Net income;
(b) Comprehensive income;
(c) Other comprehensive income; and
(d) Accumulated other comprehensive income (end of 2012).

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...