During the current year, Cooley Co. had an unrealized gain of $100,000 on a debt investment classified as available-for-sale. Cooley’s corporate tax rate is 25%. What amount of the gain should be included in Cooley’s net income and other comprehensive income at the end of the current year?

Net income                              Other comprehensive income

  1. $100,000                                                      $0
  2. $75,000                                                   $25,000
  3. $25,000                                                   $75,000
  4. $0                                                             $75,000

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