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Evgen [1.6K]
3 years ago
5

The Massoud Consulting Group reported net income of $1,382,000 for its fiscal year ended December 31, 2021. In addition, during

the year the company experienced a positive foreign currency translation adjustment of $380,000 and an unrealized loss on debt securities of $45,000. The company’s effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income is displayed net of tax.
Required:
Prepare a separate statement of comprehensive income for 2021.
Business
1 answer:
Soloha48 [4]3 years ago
5 0

Answer: Check attachment

Explanation:

Kindly check the attachment.

Note that:

Foreign currency adjustment will be:

= $380000 × (1 - 25%)

= $380,000 × 75%

= $380,000 × 0.75

= $285,000

Loss on debt securities:

= $45000 × (1 - 25%)

= $45000 × 75%

= $45000 × 0.75

= $33750

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