Terwilliger Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have

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Terwilliger Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2017. The 2017 operating results for the company were as follows.

Operating revenues...................................$12,850,000

Operating expenses.......................................8,700,000

Operating income........................................$ 4,150,000


Analysis discloses that these data include the operating results of the hotel chain, which were operating revenues $1,500,000 and operating expenses $2,400,000. The hotels were sold at a gain of $200,000 before taxes. This gain is not included in the operating results. During the year, Terwilliger had an unrealized loss on its available-for-sale securities of $600,000 before taxes, which is not included in the operating results. In 2017, the company had other revenues and gains of $100,000, which are not included in the operating results. The corporation is in the 30% income tax bracket.


Instructions

Prepare a statement of comprehensive income.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Accounting Principles

ISBN: 978-1118875056

12th edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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