单选题
For the year ended December 31,2007, Milan Company reported the following financial information : Gross profit from sales 600000 Operating expenses 100000 Unrealized loss from foreign currency translation 30000 Dividends received from available-for-sale securities 15000 Increase in minimum pension liability 45000 Interest expense 25000 Acquired treasury stock for $ 25000 more than original book value 75000 Unrealized gain from available-sale-securities 20000 Ignoring taxes, calculate Milan' s net income and comprehensive income for 2007. Net income Comprehensive income ①A. $ 490000 $ 435000 ②B. $ 490000 $ 2000 ③C. $ 40000 $ 44000
【正确答案】
A
【答案解析】Net income is equal to $ 490000 ( $ 600000 gross profit $100000 operating expenses + $15000 dividends received $ 25000 interest expense). Comprehensive income includes all transactions that affect stockholders' equity except transactions with shareholders. Thus, comprehensive income is equal to $ 435000 ($ 490000 net income $ 30000 unrealized loss from foreign currency translation $ 45000 increase in minimum pension liability + $ 20000 unrealized gain on available-for-sale securities ). The treasury stock purchase is a transaction with shareholders and is not included in either comprehensive income or net income.