4.9: Investments
- Page ID
- 43084
4.9.1 Investments Overview
A company may have idle cash that it does not need immediately for its current operations. Just like individuals, a company may seek to invest this money so that its value grows over time. Rather than placing the cash in checking or savings accounts in banks, where interest rates are relatively low, companies may choose to invest in other corporations or government entities for potentially higher rates of return.
One option is for the company to invest in equity securities, which involves purchasing stock in other corporations. Equity is actual ownership, and stock can be considered a receipt that confirms that ownership. The investor buys a number of shares of stock at a purchase price per share. The investor becomes a partial owner of the corporation and is called a stockholder.
The stock investor may then benefit in two ways. First, the investee (company invested in) may pay dividends, which are payouts of profits, to stockholders. Secondly, the market value per share may increase over time, and the investor may experience a gain on the value of the shares owned. Although there is not necessarily a guarantee of dividends or appreciation of the value of the shares of stock owned, these are the two main incentives that attract companies and individuals to invest in stock. There is no repayment due date on the ownership of shares of stock.
Investments in stock may be classified as either short or long-term assets, depending on the length of time that the buyer intends to hold the equities. Short- term stock investments held for less than one year may be called marketable securities and appear as a current asset on the investor’s balance sheet. Long- term investments in stocks are held for more than one year—often many years—by the investing corporation. These are listed in the Investments section of the firm’s balance sheet.
A second investment choice for the company is debt securities, such as corporate or governmental bonds. Bonds are loans made collectively by smaller lenders, such as other corporations and individual people, to a corporation. The people or companies who invest in corporate bonds are called bondholders. They do not become owners of a corporation like stockholders do; they are just lenders.
Bondholders lend their money to corporations in order to be paid interest on the loan amount throughout the number of years in the term of the bond. Interest on corporate bonds is often paid semi-annually—every six months. On the maturity date, bondholders are repaid the original amount that they loaned the corporation.
Investments in bonds may be classified as either short or long-term assets, depending on the length of time that the buyer intends to hold the investment. Short-term bond investments held for less than one year may be called marketable securities or trading securities and appear as a current asset on the investor’s balance sheet. Long-term investments in bonds are held for more than one year—usually many years—by the investing corporation. These are listed in the Investment section of the firm’s balance sheet for most of their life and only become current assets within one year of their maturity date. Long-term investments in bonds are classified as either held-to-maturity or available-for-sale securities, which will be explained in the following section.
Certain types of stock and bond investments may be sold at breakeven, at a gain, or at a loss, similar to the sale of fixed assets. Again, it is important to note that any gain or loss is incurred on an investment transaction is outside of what occurs in normal business operations. When a gain or loss on the sale of an investment is recognized in the same transaction as the receipt of cash, it is considered a realized gain or loss, because it occurs only at the time of the sale and is based on the amount of cash received.
Other types of stock and bond investments are adjusted to fair value, or the current trading price on the open market, throughout the time they are owned by the investor. Adjustments just prior to preparing financial statements may result in reporting a gain or loss, but in this case any gain or loss is considered unrealized since a sale has not transpired and no cash has been received yet. These concepts will be elaborated on in the discussions of investments that follow.
The following Accounts Summary Table summarizes the accounts relevant to investing in stocks and bonds.
| ACCOUNT TYPE | ACCOUNTS | TO INCREASE | TO DECREASE | NORMAL BALANCE | FINANCIAL STATEMENT | CLOSE OUT? |
|---|---|---|---|---|---|---|
| Asset | Investment in ABC Stock Investment in ABC Bonds | debit | credit | debit |
Balance |
NO |
| Stockholders’ Equity | Unrealized Holding Gain – Available-for-Sale Securities | credit | debit | credit |
Balance |
NO |
| Contra Stockholders’ Equity | Unrealized Holding Loss – Available-for-Sale Securities | debit | credit | debit |
Balance |
NO |
| Revenue or Gain | Dividends Revenue Investment Income Interest Revenue Gain on Sale of Investment Unrealized Holding Gain/ Loss – Net Income (if credit balance) | credit | debit | credit | Income Statement | YES |
| Expense or Loss | Loss on Sale of Investment Unrealized Holding Gain/ Loss – Net Income (if debit balance) | debit | credit | debit | Income Statement | YES |
4.9.2 Investments in Stock
A company may invest in the stock of other corporations if it has no immediate need for its cash. A separate account that mentions the unique name of the corporation for each stock investment is used. For example, a company might invest in the stock of three other corporations and use Investment in ABC Stock, Investment in Home Depot Stock, and Investment in Delta Airlines Stock as their three distinct asset account names. (On the balance sheet, these individual investment accounts may be combined in the Marketable Securities listing for short-term investments and/or the Equities Securities listing for long-term investments for an efficient presentation.)
There are five possible journal entries related to investing in stock, as follows:
- Purchase the stock investment
- Receive dividend payments
- Recognize net income of the issuing corporation 4. Adjust to fair value
- Sell the stock investment
Each stock investment is accounted for using one of two methods, either the fair value through net income method or the equity method. The choice for each investment depends on the percentage of another corporation’s outstanding shares that the investing company purchases.
If a company purchases less than 20% of another corporation’s outstanding shares, the fair value through net income method is used. Investors who own less than 20% of the outstanding shares are not considered to have significant influence over the company they are investing in. An example would be the purchase of 1,000 shares of another corporation that has 100,000 shares outstanding. The investor owns only 1% (1,000 / 100,000).
If a company purchases between 20% and 50% of another corporation’s outstanding shares, the equity method is used. Investors who own between 20% and 50% of the outstanding shares are considered to have significant influence over the company they are investing in. An example would be the purchase of 40,000 shares of another corporation that has 100,000 shares outstanding. The investor owns 40% (40,000 / 100,000).
The purchase of more than 50% of another corporation’s outstanding shares is considered a consolidation and will not be discussed.
Two versions of the five journal entries related to investing in stock are illustrated side by side in the journal entries that follow. The transactions on the left illustrate the fair value through net income method where the investor owns 10% (less than 20%) of the outstanding shares. Those on the right show the equity method, where the investor owns 25% (more than 20%) of the outstanding shares. Explanations are included.
1. Purchase the Stock Investment
There is no difference between the fair value through net income and equity methods when stock is purchased. The accounts used in the journal entries are identical under both methods.
| FAIR VALUE THROUGH NET INCOME method | EQUITY method | |||||||||||
| Your Corporation purchases 5,000 shares of ABC Stock for $10 per share. ABC Corporation has 50,000 shares outstanding, so Your purchases 10% of those shares. | Your Corporation purchases 5,000 shares of ABC Stock for $10 per share. ABC Corporation has 20,000 shares outstanding, so Your purchases 25% of those shares. | |||||||||||
| Account | Debit | Credit | Account | Debit | Credit | |||||||
| ▲ | Investment in ABC Stock | 50,000 | ▲ | Investment in ABC Stock | 50,000 | |||||||
| ▼ | Cash | 50,000 | ▼ | Cash | 50,000 | |||||||
| ▲ Investment in ABC Stock is an asset account that is increasing. | ▲ Investment in ABC Stock is an asset account that is increasing. | |||||||||||
| ▼ Cash is an asset account that is decreasing. | ▼ Cash is an asset account that is decreasing. | |||||||||||
|
Investment in ABC Stock debit balance: $50,000 Carrying amount per share: $10.00 ($50,000 / 5,000) Number of shares owned: 5,000 Percentage of shares owned to outstanding: 10% (5,000 / 50,000) Amount: $10 x 5,000 |
Investment in ABC Stock debit balance: $50,000 Carrying amount per share: $10.00 ($50,000 / 5,000) Number of shares owned: 5,000 Percentage of shares owned to outstanding: 25% (5,000 / 20,000) Calculation: $10 x 5,000 |
|||||||||||
| Ledger account balance: | Ledger account balance: | |||||||||||
| Investment in ABC Stock | Investment in ABC Stock | |||||||||||
| Date | Item | Debit | Credit | Debit | Credit | Date | Item | Debit | Credit | Debit | Credit | |
| 50,000 | 50,000 | 50,000 | 50,000 | |||||||||
2. Receive Dividend Payments
One difference between the fair value through net income and equity methods is seen when the issuing corporation pays cash dividends.
Fair value through net income method
Under the fair value through net income method, the investor simply reports dividend receipts as revenue. The Dividends Revenue account is credited.
Equity method
Under the equity method, dividend receipts are reported as a reduction of the investment account. The investing company’s significant ownership percentage results in a transaction that is analogous to the corporation paying itself.
|
FAIR VALUE THROUGH NET INCOME method Your Corporation receives $5,000 in dividends from ABC Corporation. |
EQUITY method Your Corporation receives $5,000 in dividends from ABC Corporation. |
|||||||||||
| Account | Debit | Credit | Account | Debit | Credit | |||||||
| ▲ | Cash | 5,000 | ▲ | Cash | 5,000 | |||||||
| ▲ | Dividends Revenue | 5,000 | ▼ | Investment in ABC Stock | 5,000 | |||||||
| ▲ Cash is an asset account that is increasing. | ▲ Cash is an asset account that is increasing. | |||||||||||
| ▲ Dividends Revenue is a revenue account that is increasing. | ▼ Investment in ABC Stock is an asset account that is decreasing. | |||||||||||
|
Investment in ABC Stock debit balance: $50,000 Carrying amount per share: $10.00 ($50,000 / 5,000) Number of shares owned: 5,000 Percentage of shares owned to outstanding: 10% (5,000 / 50,000) |
Investment in ABC Stock debit balance: $45,000 Carrying amount per share: $9.00 ($45,000 / 5,000) Number of shares owned: 5,000 Percentage of shares owned to outstanding: 25% (5,000 / 20,000) |
|||||||||||
| Ledger account balance: | Ledger account balance: | |||||||||||
| Investment in ABC Stock | Investment in ABC Stock | |||||||||||
| Date | Item | Debit | Credit | Debit | Credit | Date | Item | Debit | Credit | Debit | Credit | |
| 50,000 | 50,000 | 50,000 | 50,000 | |||||||||
| 5,000 | 45,000 | |||||||||||
3. Recognize Net Income of the Issuing Corporation
Another difference between the fair value through net income and equity methods is seen when the issuing corporation reports net income.
Fair value through net income method
There is no journal entry under the fair value through net income method, where the percentage of investor ownership is not considered significant enough to participate in the issuing company’s earnings.
Equity method
Under the equity method, the investing corporation owns such a significant percentage of the issuing corporation’s shares that it actually takes ownership of its percentage of the issuing corporation’s net income and reports it as its own. In this case, Your Corporation owns 25% of ABC Corporation’s outstanding shares, so it recognizes 25% of ABC Corporation’s net income ($100,000 x 25% = $25,000). This results in an increase in the value of the investment account as well.
|
FAIR VALUE THROUGH NET INCOME method ABC Corporation reports net income of $100,000. |
EQUITY method ABC Corporation reports net income of $100,000. |
|||||||||||
| Account | Debit | Credit | Account | Debit | Credit | |||||||
| ▲ | Investment in ABC Stock | 25,000 | ||||||||||
| ▲ | Investment in ABC Stock | 25,000 | ||||||||||
| NO JOURNAL ENTRY REQUIRED to account for ABC net income |
▲ Investment in ABC Stock is an asset account that is increasing. ▲ Investment Income is a revenue account that is increasing. Investment in ABC Stock new debit balance: $70,000 Carrying amount per share: $14.00 ($70,000 / 5,000) Number of shares owned: 5,000 Percentage of shares owned to outstanding: 25% (5,000 / 20,000) Calculation: $100,000 x 25% |
|||||||||||
| Ledger account balance: | Ledger account balance: | |||||||||||
| Investment in ABC Stock | Investment in ABC Stock | |||||||||||
| Date | Item | Debit | Credit | Debit | Credit | Date | Item | Debit | Credit | Debit | Credit | |
| 50,000 | 50,000 | 50,000 | 50,000 | |||||||||
| 5,000 | ||||||||||||
| 25,000 | 70,000 | |||||||||||
4. Adjust to Fair Value
Fair value through net income method
A third difference between the two methods is that the carrying value of the investment under the fair value through net income method must be adjusted to fair value at the end of each accounting period. Fair value is the current trading price of the stock on the market, which is readily available for public corporations in financial newspapers and online sites.
For investments that involve less than 20% of the issuing corporation’s outstanding stock, a gain or loss is recorded if fair value is different than carrying value. However, it is an unrealized gain or loss since the investment has not yet been sold and there are no cash proceeds yet. The investment account is debited if the fair value increases, and an unrealized gain is recognized by crediting the Unrealized Holding Gain/Loss – Net Income account. These accounts in the journal entry are reversed and an unrealized loss results if the fair value of the investment declines.
The Unrealized Holding Gain/Loss – Net Income account appears on the income statement under a category heading called other comprehensive income section, after the net income line. An unrealized gain is added to net income and/or an unrealized loss is deducted from it to arrive at the final income statement amount of comprehensive income. Unrealized gains and losses are treated similarly to realized gains and losses—which occur when the stock is actually sold for cash—in terms of arriving at the final income statement amount. The Unrealized Holding Gain/Loss – Net Income account is adjusted at least annually to reflect the current trading price of the stock investment.
Equity method
For investments that involve 20% or more of the issuing corporation’s outstanding stock, there is no adjustment to fair value.
|
FAIR VALUE THROUGH NET INCOME method The fair value of the 5,000 shares of ABC Corporation stock is $12.00 per share at the end of the accounting period. |
EQUITY method | |||||||||||
| Account | Debit | Credit | Account | Debit | Credit | |||||||
| ▲ | Investment in ABC Stock | 10,000 | ||||||||||
| ▲ | Unrealized holding Gain / Loss - Net Income | 10,000 | ||||||||||
|
▲ Investment in ABC Stock is an asset account that is increasing. ▲ Unrealized Holding Gain/Loss – Net Income is a gain that is increasing. Investment in ABC Stock debit balance: $60,000 Carrying amount per share: $12.00 ($60,000 / 5,000) Number of shares owned: 5,000 Percentage of shares owned to outstanding: 10% (5,000 / 50,000) Amount: 5,000 x ($12.00 fair value – $10.00 cost) |
NO JOURNAL ENTRY REQUIRED to adjust to fair value. | |||||||||||
| Ledger account balance: | Ledger account balance: | |||||||||||
| Investment in ABC Stock | Investment in ABC Stock | |||||||||||
| Date | Item | Debit | Credit | Debit | Credit | Date | Item | Debit | Credit | Debit | Credit | |
| 50,000 | 50,000 | 50,000 | 50,000 | |||||||||
| 5,000 | 45,000 | |||||||||||
3. Recognize Net Income of the Issuing Corporation
Another difference between the fair value through net income and equity methods is seen when the issuing corporation reports net income.
Fair value through net income method
There is no journal entry under the fair value through net income method, where the percentage of investor ownership is not considered significant enough to participate in the issuing company’s earnings.
Equity method
Under the equity method, the investing corporation owns such a significant percentage of the issuing corporation’s shares that it actually takes ownership of its percentage of the issuing corporation’s net income and reports it as its own. In this case, Your Corporation owns 25% of ABC Corporation’s outstanding shares, so it recognizes 25% of ABC Corporation’s net income ($100,000 x 25% = $25,000). This results in an increase in the value of the investment account as well.
|
FAIR VALUE THROUGH NET INCOME method ABC Corporation reports net income of $100,000. |
EQUITY method ABC Corporation reports net income of $100,000. |
|||||||||||
| Account | Debit | Credit | Account | Debit | Credit | |||||||
| ▲ | Investment in ABC Stock | 25,000 | ||||||||||
| ▲ | Investment in ABC Stock | 25,000 | ||||||||||
| NO JOURNAL ENTRY REQUIRED to account for ABC net income |
▲ Investment in ABC Stock is an asset account that is increasing. ▲ Investment Income is a revenue account that is increasing. Investment in ABC Stock new debit balance: $70,000 Carrying amount per share: $14.00 ($70,000 / 5,000) Number of shares owned: 5,000 Percentage of shares owned to outstanding: 25% (5,000 / 20,000) Calculation: $100,000 x 25% |
|||||||||||
| Ledger account balance: | Ledger account balance: | |||||||||||
| Investment in ABC Stock | Investment in ABC Stock | |||||||||||
| Date | Item | Debit | Credit | Debit | Credit | Date | Item | Debit | Credit | Debit | Credit | |
| 50,000 | 50,000 | 50,000 | 50,000 | |||||||||
| 5,000 | ||||||||||||
| 25,000 | 70,000 | |||||||||||
4. Adjust to Fair Value
Fair value through net income method
A third difference between the two methods is that the carrying value of the investment under the fair value through net income method must be adjusted to fair value at the end of each accounting period. Fair value is the current trading price of the stock on the market, which is readily available for public corporations in financial newspapers and online sites.
For investments that involve less than 20% of the issuing corporation’s outstanding stock, a gain or loss is recorded if fair value is different than carrying value. However, it is an unrealized gain or loss since the investment has not yet been sold and there are no cash proceeds yet. The investment account is debited if the fair value increases, and an unrealized gain is recognized by crediting the Unrealized Holding Gain/Loss – Net Income account. These accounts in the journal entry are reversed and an unrealized loss results if the fair value of the investment declines.
The Unrealized Holding Gain/Loss – Net Income account appears on the income statement under a category heading called other comprehensive income section, after the net income line. An unrealized gain is added to net income and/or an unrealized loss is deducted from it to arrive at the final income statement amount of comprehensive income. Unrealized gains and losses are treated similarly to realized gains and losses—which occur when the stock is actually sold for cash—in terms of arriving at the final income statement amount. The Unrealized Holding Gain/Loss – Net Income account is adjusted at least annually to reflect the current trading price of the stock investment.
Equity method
For investments that involve 20% or more of the issuing corporation’s outstanding stock, there is no adjustment to fair value.
|
FAIR VALUE THROUGH NET INCOME method The fair value of the 5,000 shares of ABC Corporation stock is $12.00 per share at the end of the accounting period. |
EQUITY method | |||||||||||
| Account | Debit | Credit | Account | Debit | Credit | |||||||
| ▲ | Investment in ABC Stock | 10,000 | ||||||||||
| ▲ | Unrealized holding Gain/ Loss - Net Income | 10,000 | ||||||||||
|
▲ Investment in ABC Stock is an asset account that is increasing. ▲ Unrealized Holding Gain/Loss – Net Income is a gain that is increasing. Investment in ABC Stock debit balance: $60,000 Carrying amount per share: $12.00 ($60,000 / 5,000) Number of shares owned: 5,000 Percentage of shares owned to outstanding: 10% (5,000 / 50,000) Amount: 5,000 x ($12.00 fair value – $10.00 cost) |
NO JOURNAL ENTRY REQUIRED to adjust to fair value. | |||||||||||
| Ledger account balance: | Ledger account balance: | |||||||||||
| Investment in ABC Stock | Investment in ABC Stock | |||||||||||
| Date | Item | Debit | Credit | Debit | Credit | Date | Item | Debit | Credit | Debit | Credit | |
| 50,000 | 50,000 | 50,000 | 50,000 | |||||||||
| 10,000 | 60,000 | 5,000 | 45,000 | |||||||||
| 25,000 | 70,000 | |||||||||||
| Ledger account balance: | ||||||||||||
| Unrealized Holding Gain/Loss - Net Income | ||||||||||||
| Date | Item | Debit | Credit | Debit | Credit | |||||||
| 10,000 | 10,000 | |||||||||||
5. Sell the Stock Investment
Fair value through net income method
A final difference between the two methods is on the sale of the investment. The carrying value of the investment under the fair value through net income method must be adjusted to fair value at the time the shares are sold. The investment account is debited if the fair value increases, and an unrealized gain is recognized by crediting the Unrealized Holding Gain/Loss – Net Income account. These accounts in the journal entry are reversed if the fair value of the investment declines.
Equity method
For investments that use the equity method, there is no adjustment to fair value at the time of sale.
|
FAIR VALUE THROUGH NET INCOME method The fair value of the 5,000 shares of ABC Corporation stock is $11.60 per share at the time the shares are sold. |
EQUITY method NO JOURNAL ENTRY REQUIRED to adjust to fair value |
|||||||||||
| Account | Debit | Credit | Account | Debit | Credit | |||||||
| ▲ | Unrealized Holding Gain/Loss – Net Income | 10,000 | ||||||||||
| ▼ | Investment in ABC Stock | 10,000 | ||||||||||
|
▲ Unrealized Holding Gain/Loss – Net Income is a loss that is increasing. ▼ Investment in ABC Stock is an asset account that is decreasing. Amount: 5,000 x ($12.00 carrying value – $11.60 fair value) Your Corporation sells all 5,000 shares of ABC Corporation stock for the fair value of $11.60 per share. |
Your Corporation sells all 5,000 shares of ABC Corporation stock for $15.00 per share. | |||||||||||
| Account | Debit | Credit | Account | Debit | Credit | |||||||
| ▲ | Cash | 58,000 | ▲ | Cash | 75,000 | |||||||
| ▼ | Investment in ABC Stock | 58,000 | ▼ | Investment in ABC Stock | 70,000 | |||||||
| ▲ | Gain on Sale of Investment | 5,000 | ||||||||||
|
▲ Cash is an asset account that is increasing. ▼ Investment in ABC Stock is an asset account that is decreasing. |
▲ Cash is an asset account that is increasing. ▼ Investment in ABC Stock is an asset account that is decreasing. ▲ Gain on Sale of Investment is a revenue account that is increasing. |
|||||||||||
|
Investment in ABC Stock debit balance: $58,000 Carrying amount per share: $11.60 ($58,000 / 5,000) Number of shares owned: 5,000 Percentage of shares owned to outstanding: 10% (5,000 / 50,000) Amount: 5,000 x $11.60 |
Cash amount: 5,000 x $15.00 Investment amount: debit ledger balance Gain amount: 75,000 – 70,000 |
|||||||||||
| Ledger account balance: | Ledger account balance: | |||||||||||
| Investment in ABC Stock | Investment in ABC Stock | |||||||||||
| Date | Item | Debit | Credit | Debit | Credit | Date | Item | Debit | Credit | Debit | Credit | |
| 50,000 | 50,000 | 50,000 | 50,000 | |||||||||
| 10,000 | 60,000 | 5,000 | 45,000 | |||||||||
| 2,000 | 58,000 | 25,000 | 70,000 | |||||||||
| 58,000 | 0 | 70,000 | 0 | |||||||||
| Ledger account balance: | ||||||||||||
| Unrealized Holding Gain/Loss - Net Income | ||||||||||||
| Date | Item | Debit | Credit | Debit | Credit | |||||||
| 10,000 | 10,000 | |||||||||||
| 2,000 | 8,000 | |||||||||||
4.9.3 Investments in Stock on the Financial Statements
The investment in stock accounts appear in the assets section of the balance sheet. Those that are intended to be sold or traded within one year are current assets. Those that are intended to be held for more than one year are categorized as long-term investments.
LESS THAN 20% OWNERSHIP (FAIR VALUE THROUGH NET INCOME METHOD)
The Unrealized Holding Gain/Loss – Net Income account appears on the income statement as part of other comprehensive income. It represents the amount of gain or loss on investments that have not yet been sold, but whose fair value has changed since their initial cost. A fair value greater than cost represents an unrealized gain; a fair value less than cost represents an unrealized loss. The Unrealized Holding Gain/Loss – Net Income account is adjusted over time, particularly before financial statements are prepared, to update the unrealized gain or loss amount based on the most current fair value.
The Gain on Sale of Investment and Loss on Sale of Investment accounts that represent actual gains and losses from the sale of investments are not used for stock investments that are less than 20% of outstanding shares. This is because the Unrealized Holding Gain/Loss – Net Income account is updated just prior to the sale to bring the investment account to fair value, which is the amount of cash received from the sale. Therefore, no realized gain or loss is recognized at that time.
20% TO 50% OWNERSHIP (EQUITY METHOD)
For investments that involve 20% or more of the issuing corporation’s outstanding stock, there is no adjustment to fair value and the Unrealized Holding Gain/Loss – Net Income account is not used.
The Gain on Sale of Investment and/or Loss on Sale of Investment accounts appear on the income statement as other income. These represent realized gains or losses that result from the sale of stock investments under the equity method.
The following table includes financial statements with select accounts for a company that holds equity investments.
| Comprehensive Income Statement | Balance Sheet | ||
| Revenues | $XXX,XXX | ASSETS | |
| Expenses | XXX,XXX | Current assets: | |
| \(\ \quad \)Income from operations | $XXX,XXX | \(\ \quad \)Marketable securities | $XXX,XXX |
| Other income and expenses: | Long-term investments: | ||
| \(\ \quad \)Dividends revenue | XXX,XXX | Equity securities | XXX,XXX |
| \(\ \quad \)Investment Income 2 | XXX,XXX | ||
| \(\ \quad \)Gain on sale of investment 2 | XXX,XXX | ||
| \(\ \quad \)Loss on sale of investment 2 | (XXX,XXX) | ||
| Net income | $XXX,XXX | ||
| Other comprehensive income: | |||
| \(\ \quad \)Unrealized holding gain/loss on investments 1 | XXX,XXX | ||
| Comprehensive income | $XXX,XXX | ||
1 related to fair value through net income method securities
2 related to equity method securities