On January 1, 2021, Kavior Inc. had a credit balance in the Accumulated Other Comprehensive Income ("AOCI") of $36,970. On August 21, 2021, Kavior Inc. purchased 3 shares of Emilia Inc. for $110 plus $2,500 in brokage commission, which were capitalized. Kavior Inc. correctly classified this investment as FV-OCI without recycling. On September 20, 2021, Kavior Inc. sold half of the shares for $114 each. On December 31, 2021, Emilia Inc. shares traded at $107. In 2021, Kavior Inc. reported net income $35,920. The amount that Kavior Inc. would report in its AOCI account at December 31, 2021 is: O a. $41,670 O b. $43,970 O c. $31,220

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2021, Kavior Inc. had a credit balance in the Accumulated Other Comprehensive Income ("AOCI") of $36,970. On August 21, 2021, Kavior Inc. purchased 3,000
shares of Emilia Inc. for $110 plus $2,500 in brokage commission, which were capitalized. Kavior Inc. correctly classified this investment as FV-OCI without recycling. On
September 20, 2021, Kavior Inc. sold half of the shares for $114 each. On December 31, 2021, Emilia Inc. shares traded at $107. In 2021, Kavior Inc. reported net income of
$35,920. The amount that Kavior Inc. would report in its AOCI account at December 31, 2021 is:
O a. $41,67O
O b. $43,970
O c.
$31,220
O d. $48,470
O e. $42,720
Transcribed Image Text:On January 1, 2021, Kavior Inc. had a credit balance in the Accumulated Other Comprehensive Income ("AOCI") of $36,970. On August 21, 2021, Kavior Inc. purchased 3,000 shares of Emilia Inc. for $110 plus $2,500 in brokage commission, which were capitalized. Kavior Inc. correctly classified this investment as FV-OCI without recycling. On September 20, 2021, Kavior Inc. sold half of the shares for $114 each. On December 31, 2021, Emilia Inc. shares traded at $107. In 2021, Kavior Inc. reported net income of $35,920. The amount that Kavior Inc. would report in its AOCI account at December 31, 2021 is: O a. $41,67O O b. $43,970 O c. $31,220 O d. $48,470 O e. $42,720
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