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ACC 309 Final ProjectCHRISTINA CANOSOUTHERN NEW HAMPSHIRE
Other comprehensive income for Peyton Approved includes Net Income and OtherComprehensive Income. In this case the other comprehensive income is marketable securitieswhich is at a value of $5,500,000.00. The fair market value at the balance sheet day is set at$5,235,000.00 which is recorded as comprehensive income. The unrealized loss, which will thenbe recorded on the balance sheet, is calculated as the following:Unrealized loss on Market Securities – Available for saleUpon completing the calculations the Unrealized loss will be $265,000.00 (5,500,000 –5,235,000). The Other Comprehensive Income on the balance sheet will then be the gain/loss ofthe Unrealized loss. Other Comprehensive income is not recorded because it has not yet beenrealized. There are three things that make up of other comprehensive income: 1.) pensionadjustments, 2.) foreign currency, and 3.) unrealized gain/loses. The rationale in PeytonApproved for recognizing in other comprehensive income is classified as the gain/loss on thebalance sheet.
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Generally Accepted Accounting Principles,Peyton,Governmental Accounting Standards