. On September 9, Year One, Johnson Inc. purchased 500 shares of Thomas Company stock...
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. On September 9, Year One, Johnson Inc. purchased 500 shares of Thomas Company stock when this stock was selling for $20 per share. Johnson plans to hold these shares for a short time and hopefully sell the investment for a gain. Shortly thereafter, Thomas paid a cash dividend of $0.32 per share. On December 31, Year One, Johnson prepares its financial statements. At that time, this stock is selling for $18 per share.
a. Determine all balances that Johnson will report on its Year One income statement in connection
with this investment.
b. Determine all balances that Johnson will report on its December 31, Year One, balance sheet in
connection with this investment.
c. If Johnson reports net income of $79,000 for Year One, what should be disclosed as
comprehensive income?
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