Question

The following information relates to Bonita Co. for the year ended December 31, 2017: net income 1,298 million; unrealized holding loss of $11.3 million related to available-for-sale debt securities during the year; accumulated other comprehensive income of $51.9 million on December 31, 2016. Assuming no other changes in accumulated other comprehensive income.

Determine (a) other comprehensive income for 2017, (b) comprehensive income for 2017, and (c) accumulated other comprehensive income at December 31, 2017. (Enter answers in millions to 1 decimal place, e.g. 25.5. Enter loss using either a negative sign preceding the number e.g. -45.2 or parentheses e.g. (45.2).)
(a) Other comprehensive income(loss) for 2017 $ million
(b) Comprehensive income for 2017 $ million
(c) Accumulated other comprehensive income $ million

Answer 1

a. The company incurred a loss of $11.3 million as an unrealized income from available-for-sale debt securities. It is the actual loss. Therefore, other comprehensive income is -($11.3) million.

b. Comprehensive income = Net income - Unrealized holding loss

Comprehensive income = $1,298 million - $11.3 million

Comprehensive income = $1,286.7 million

c. Accumulated comprehensive income = Existing income - Unrealized holding loss

Accumulated comprehensive income = $51.9 million - $11.3 million

Accumulated comprehensive income = $40.6 million