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inysia [295]
3 years ago
5

The Ziltech Consulting Group reported net income of $1,000,000 for its fiscal year ended December 31, 2021. In addition, during

the year the company experienced a positive pretax foreign currency translation adjustment of $400,000 and an unrealized pretax loss on debt securities of $80,000. The company’s effective tax rate on all items affecting comprehensive income is 25%. The amount of comprehensive income reported on statement of comprehensive income for 2021 would be:
Business
1 answer:
grigory [225]3 years ago
7 0

Answer:

$1,240,000

Explanation:

Given that,

Net income = $1,000,000

Pretax foreign currency translation adjustment = $400,000

Unrealized pretax loss on debt securities = $80,000

Effective tax rate = 25%

Total other comprehensive income:

= Foreign currency translation adjustment - Loss on debt securities

= [$400,000 × (1 - 25%)] - [$80,000 × (1 - 25%)]

= ($400,000 × 0.75) - ($80,000 × 0.75)

= $300,000 - $60,000

= $240,000

Comprehensive income:

= Net income + Total other comprehensive income

= $1,000,000 + $240,000

= $1,240,000

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3 years ago
Rick is considering the following alternatives for investing in D Industries, which is now selling for $44 per share:
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Answer:

Check the explanation

Explanation:

To calculate or compute the annual percentage growth rate over a particular year period, minus the opening value from the ending value, after which you’ll divide by the opening value. Then multiply the result you got by 100 to get your growth rate that is demonstrated as a percentage.

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4 years ago
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