The temporary investments of Secure Connections, Inc., include only 10,000 shares of Lambert Acres, Inc., common stock

Question:

The temporary investments of Secure Connections, Inc., include only 10,000 shares of Lambert Acres, Inc., purchased on January 10, 2006, for $20 per share. As of the December 31, 2006, date, assume that the share price declined to $17 per share. As of the December 31, 2007, date, assume that the share price rose to $27 per share. The investment was held through December 31, 2007. Assume a tax rate of 40%.
a. Determine the net after-tax unrealized gain or loss from holding the Lambert Acres for 2006 and 2007.
b. What is the balance of Accumulated Other Comprehensive Income or Loss for December 31, 2006, and December 31, 2007?
c. Where is Accumulated Other Comprehensive Income or Loss disclosed on the financial statements?

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... Balance Sheet
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...