Answer and Explanation:
The computation is shown below:
Sales revenue $775,000
Less: Cost of goods sold 350,000
Gross profit 425,000
Less: Selling administrative expenses 125,000
Income from operations 300,000 (a)
b.
Income from operations
Other revenues and gains
Add: Gain on sale of plant assets 75,000
Other expenses and losses
Income before other expenses and losses 375,000
Less: Interest expense 15,000
Income from continuing operations 360,000
Less: Loss on discontinued operations (30,000)
Net Income 330,000 (b)
c.
Net income
Less: Allocation to noncontrolling interest (100,000)
Net income attributable to controlling shareholders $230,000 (c)
d.
Net income $330,000
Add: Unrealized gain on available-for-sale investments 25,000
Comprehensive income $355,000 (d)
e. Retaining earnings opening balance $0
Add: Net income $330,000
Less: Dividends (12,000)
Closing Retained earnings $318,000 (e)
