Question

Teton, Inc., reported a net gain of $41,400 on its foreign assets due to the weakening of the U.S. dollar in 2017. In the same year, the company disclosed gains of $958,800 on its derivatives and hedges and a $112,800 unrealized gain on its trading securities. The company also reported a $556,200 loss on the sale of some equipment. Which of the following best describes the impact of these transactions on Teton, Inc.'s accounts? A. $1,113,000 increase to net income B. $1,000,200 increase to accumulated other comprehensive income C. $1,000,200 increase to net income D. $ 154,200 increase to accumulated other comprehensive income E. None of the above

Answer 1

Answer:

Option D is correct one.

$ 154,200 increase to accumulated other comprehensive income

Explanation:

Foreign currency gain = $41,400

Un-realised gain on its trading securities= $112,800

Increase in Accumulated other comprehensive income= $ 154,200