Fongeallaz Corporation's Income Statement for Year 2 Appears Below

question 68

Multiple Choice

Fongeallaz Corporation's income statement for Year 2 appears below: The company's total stockholders' equity at the end of Year 2 amounted to $841,000 and at the end of Year 1 to $810,000.The company's return on equity for Year 2 is closest to:

• A)64.40%
• B)8.93%
• C)6.75%
• D)4.72%

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Definitions:

Unrealized Gains

Increases in the value of an asset that has not been sold, and thus the gain has not been "realized" through a transaction.

Comprehensive Income

The total change in equity for a business enterprise during a period from transactions and other events from non-owner sources.

Available-For-Sale Securities

Financial investments that a company holds with the intent of selling for a profit but are not actively traded or held to maturity.

Unrealized Loss

A loss that occurs on paper due to the decrease in value of an investment but has not yet been realized through actual sale or exchange.