Penn Company reported the following information for 2007: $$\begin{array} { l r }
\text { Sales revenue } & \$ 510,000 \
\text { Cost of goods sold } & 350,000 \
\text { Operating expenses } & 55,000 \
\text { Unrealized holding gain on available-for-sale securities } & 40,000 \
\text { Cash dividends received on the securities } & 2,000
\end{array}$$ For 2007, Penn would report other comprehensive income of
A)$137,000.
B)$135,000.
C)$42,000.
D)$40,000.

Question

Penn Company reported the following information for 2007: $$\begin{array} { l r } 
\text { Sales revenue } & \$ 510,000 \
\text { Cost of goods sold } & 350,000 \
\text { Operating expenses } & 55,000 \
\text { Unrealized holding gain on available-for-sale securities } & 40,000 \
\text { Cash dividends received on the securities } & 2,000
\end{array}$$ For 2007, Penn would report other comprehensive income of
A)$137,000.
B)$135,000.
C)$42,000.
D)$40,000.

Quizplus · Accepted Answer

Other comprehensive income includes items not included in net income, such as unrealized gains on available-for-sale securities. Here, the unrealized holding gain is $40,000.

Penn Company Reported the Following Information for 2007 For 2007, Penn Would Report Other Comprehensive Income of A)$137,000

Penn Company Reported the Following Information for 2007 For 2007, Penn Would Report Other Comprehensive Income of
A)$137,000