Duke Company's records show the following account balances at December 31, 2018: Sales..................................................................................$ 15,000,000 Cost of goods
Question:
Duke Company's records show the following account balances at December 31, 2018:
Sales..................................................................................$ 15,000,000
Cost of goods sold......................................................................9,000,000
General and administrative expenses................................................1,000,000
Selling expenses..........................................................................500,000
Interest expense..........................................................................700,000
Income tax expense has not yet been determined. The following events also occurred during 2018. All transactions are material in amount.
1. $300,000 in restructuring costs were incurred in connection with plant closings.
2. Inventory costing $400,000 was written off as obsolete. Material losses of this type are considered to be unusual.
3. It was discovered that depreciation expense for 2017 was understated by $50,000 due to a mathematical error.
4. The company experienced a negative foreign currency translation adjustment of $200,000 and had unrealized gains on investments of $180,000.
Required:
Prepare a single, continuous multiple-step statement of comprehensive income for 2018. The company's effective tax rate on all items affecting comprehensive income is 40%. Each component of other comprehensive income should be displayed net of tax. Ignore EPS disclosures.
Step by Step Answer:
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas