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.