Question

rayer Corporation has income from continuing operations of $319,000 for the year ended December 31, 2017. It also has the following items (before considering income taxes). 1. An unrealized loss of $58,800 on available-for-sale securities. 2. A gain of $25,300 on the discontinuance of a division (comprised of a $8,200 loss from operations and a $33,500 gain on disposal). 3. A correction of an error in last year’s financial statements that resulted in a $20,000 understatement of 2016 net income. Assume all items are subject to income taxes at a 16% tax rate. Prepare a statement of comprehensive income, beginning with income from continuing operations. SWIFTY CORPORATION Partial Statement of Comprehensive Income $ $ $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT Question Attempts: 1 of 5 used SAVE FOR LATER SUBMIT ANSWER

Answer 1

Answer:

before tax     305,500

tax expense    48,880

after tax        300,620

Explanation:

income from continuing operations of   319,000

Capital gain                                                 33,500

understatement of 2016 income               20,000

loss on available-for-sale securities.        (58,800)

discontinued operations                             (8,200)  

Total other comprehensive income      305,500

tax expense        16%                                (48,880)  

net                                                              300,620

We will list each transaction, notice the understatement of 2016 income means the company recognize a lower income than it should, so we increase the other comprehensive income.