Question

O'Reilly Beverage Company reported net income of $650,000 for 2021. In addition, the company deferred a $60,000 pretax loss on derivatives and had pretax net unrealized gains on debt securities of $40,000. Prepare a separate statement of comprehensive income for 2013. The company’s income tax rate is 40%.

Answer 1

Answer:

$638,000

Explanation:

Preparation of a separate statement of comprehensive income .

O’REILLY BEVERAGE COMPANYStatement of Comprehensive IncomeFor the Year Ended December 31, 2013

Net income (loss) $650,000

Other comprehensive income (loss):

Deferred gain (loss) on derivatives, net of tax($36,000)

[$60,000-($60,000*40%)]

Unrealized gains (losses) on investment securities, net of tax $24,000

[$40,000-($40,000*40%)]

Total other comprehensive income (loss)($12,000)

($36,000-$24,000)

Comprehensive income (loss)$638,000

($650,000-$12,000)

Therefore the separate statement of comprehensive income will be $638,000