LM's, Inc Reported Net Income for the Year Ending December 31

question 51

Essay

LM's, Inc. reported net income for the year ending December 31 of $483,500. Dividends paid during the year totaled $52,900. The company holds available-for-sale securities with an original cost of $162,000 and a fair value of $181,000 at the end of the year. They also hold trading securities with an original cost of $150,000 and a fair value of $147,000. Retained earnings on January 1 was $736,400 and accumulated other comprehensive income on January 1 as $16,200.

Calculate the following balances to be reported in the financial statements dated December 31.
a. Valuation allowance for available-for-sale securities
b. Comprehensive income
c. Retained earnings
d. Accumulated other comprehensive income

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