At December 31, 2020, the available-for-sale debt portfolio for Blossom, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss)
A $17,900 $15,200 $(2,700)
B 11,000 15,000 4,000
C 24,000 26,500 2,500
Total $52,900 $56,700 3,800
Previous fair value adjustment balance—Dr. 400
Fair value adjustment—Dr. $3,400
On January 20, 2021, Blossom, Inc. sold security A for $15,300. The sale proceeds are net of brokerage fees. Blossom, Inc. reports net income in 2020 of $123,000 and in 2021 of $142,000. Total holding gains (including any realized holding gain or loss) equal $41,000 in 2021.
Prepare a statement of comprehensive income for 2020, starting with net income.
Prepare a statement of comprehensive income for 2021, starting with net income.

a.                                      Blossom Inc

                    Statement of Comprehensive Income

                  For the Year Ended December 31, 2020

Particulars                                                               Amount

Net income                                                            $123,000

Other comprehensive income:

Add: Unrealized holding gain                               $3,400

Comprehensive income                                       $126,400

b.                                       Blossom Inc

                    Statement of Comprehensive Income

                  For the Year Ended December 31, 2021

Particulars                                                               Amount

Net income                                                            $142,000

Other comprehensive income:  

Total holding gains in 2021                $41,000

Add: Reclassification adjustment-      $2,700      

for loss included in net income                             $38,300

Comprehensive income                                        $180,300

Note:

Particulars                                                                  Amount

Net amount received from the sale of Security A   $17,900

Less: Cost of Security A                                            $15,200

Loss on the sale of Security A                                ($2,700)

idk

explanation: