Answer:
correct option is c. $51,240
Explanation:
given data
fair value of Ritter Inc = $2,120,000
Landis Company purchased = $2,000,000
rate = 8 %
time = 5 year
bonds sold = $2,083,160
rate = 7%
premiums July 1 = $7,080
premiums December 31 = $7,320
solution
we get here Landis Company comprehensive income as separate component of stockholders' equity that is express as
comprehensive income = fair value of Ritter - ( bonds sold - premiums July 1 - premiums December 31 ) ..................1
put here value and we get
comprehensive income = $2,120,000 - ( $2,083,160 - $7,080 - $7,320 )
comprehensive income = $51240
so correct option is c. $51,240
