Answer:
(A) $144,960
(B) $109,890
(C) $107,170
(D) $102,220
Explanation:
(A) The income from operation can be calculated as follows
= Sales - cost of good sold -selling and administrative expenses
= $333,190-$138,130-$50,100
= $144,960
(B) The net income can be calculated as follows
= Sales - gain in sales of plant assets -cost of good sold-selling and administrative expense - interest expenses
= $333,190-28,720-138,130-50,100-6,350
= $109,890
(C) The comprehensive income can be calculated as follows
= Net income + unrealized gain on available for sale investment -loss in discontinued operation
= $109,890+ $10,340-$13,060
= $107,170
(D) The retained earnings balance at December 31, 2014 can be calculated as follows
= comprehensive income - Dividend declared and paid
= $107,170 - $4950
= $102,220
