Question

In its proposed 2022 income statement, Hrabik Corporation reports income before income taxes $500,000, income taxes $100,000 (not including unusual items), loss on operation of discontinued music division $60,000, gain on disposal of discontinued music division $40,000, and unrealized loss on available-for-sale securities $150,000. The income tax rate is 20%. Prepare a correct statement of comprehensive income, beginning with income before income taxes.

Answer 1

Answer:

Explanation:

Statement of Comprehensive Income :

                                                                                    $                   $

Income from continuing operation before tax     500,000

Income Tax                                                           (100,000)

After Tax Income from Continuing operation                            400,000

Loss from discontinuing operation                       (60,000)

Gain on disposal of discontinuing operation       40,000

loss  on discontinuing operation b/4 tax              (20,000)

income tax  benefit @ 20%                                     4,000

After tax gain on discontinuing operation                                 (16,000)

Net Income                                                                                   384,000

Unrealized loss on available-for -sale securities                       (150,000)

Other Comprehensive Income                                                    234,000