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:

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The process of forming ideas or understanding based on the categorization and generalization of objects, events, or situations.

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