CA 4 7 a Separate Statement Current Year Prior Year income components Net

Ca 4 7 a separate statement current year prior year

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CA 4-7 (a) Separate Statement Current Year Prior Year . . . income components . . . Net income ....................................................................... $400,000 $410,000 Comprehensive Income Statement Net income ....................................................................... $400,000 $410,000 Unrealized gains .............................................................. 15,000 Comprehensive income ................................................... $415,000 $410,000 (b) Combined Format . . . income components . . . Net income ........................................................................ $400,000 $410,000 Other comprehensive income Unrealized gains ............................................................... 15,000 Comprehensive income .................................................... $415,000 $410,000 (c) Nelson can choose either approach, according to FASB ASC 220-10-45. The method chosen should be based on which one provides the most useful information. For example, Nelson should not choose the combined format because the gains result in an increasing trend in comprehensive income, while net income is declining.
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