Answer:
a. Blossom Inc
Statement of Comprehensive Income
For the Year Ended December 31, 2020
Particulars Amount
Net income $123,000
<u>Other comprehensive income</u>:
Add: Unrealized holding gain <u>$3,400</u>
Comprehensive income <u>$126,400</u>
b. Blossom Inc
Statement of Comprehensive Income
For the Year Ended December 31, 2021
Particulars Amount
Net income $142,000
<u>Other comprehensive income</u>:
Total holding gains in 2021 $41,000
Add: Reclassification adjustment- <u>$2,700</u>
for loss included in net income <u>$38,300</u>
Comprehensive income <u>$180,300</u>
Note:
Particulars Amount
Net amount received from the sale of Security A $17,900
Less: Cost of Security A <u>$15,200</u>
Loss on the sale of Security A <u>($2,700)</u>