Jack's by the Tracks What Effect Will the Unrealized Gain on Available-For-Sale Securities Have

question 158

Multiple Choice

Jack's by the Tracks. Has the following partial balance sheet: $\begin{array}{c}\text { JACK'S BY THE TRACKS }\\\text { Balance Sheet (partial) }\\\begin{array}{lr}\text { Stockholders' Equity. }\\\text { Common Stock } & \$ 6,000,000 \\\text { Retained Earnings } & 2,000,000 \\\text { Total Paid-in capital and retained earnings } & 8,000,000 \\\text { Add: Unrealized gain on available-for-sale securities } & 800,000 \\\text { Total Stockholders' Equity: } & \$ 8,800,000\end{array}\end{array}$ What effect will the unrealized gain on available-for-sale securities have on comprehensive income?

• A) No effect on comprehensive income.
• B) Increase of $800000 in comprehensive income.
• C) Increase of $8800000 in comprehensive income.
• D) Decrease of $800000 in comprehensive income.

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Definitions:

FireWire

A high-speed serial bus interface standard for connecting digital devices, especially audio and video equipment, to a computer, allowing for rapid data transfer.

IEEE 1394

An interface standard for a serial bus for high-speed communications and isochronous real-time data transfer, commonly referred to as FireWire.

RJ-45

A type of connector used on Ethernet network cards and ports. Used to connect a device to the wired network.

RJ-11

A type of connector used with analog modems and traditional phone jacks.