Violet Bick SA owns a number of cruise ships and a chain of hotels. The hotels, which
Question:
Violet Bick SA owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2020. The 2020 operating results for the company were as follows.
Operating revenues ................................€12,900,000
Operating expenses ....................................8,700,000
Operating income ....................................€ 4,200,000
Analysis discloses that these data include the operating results of the hotel chain, which were operating revenues €2,000,000 and operating expenses €2,500,000. The hotels were sold at a gain of €300,000 before taxes. This gain is not included in the operating results. During the year, the company had an unrealized gain on non-trading securities of €150,000. In 2020, the company had other expense of €200,000, which is not included in the operating results. The company is in the 30% income tax bracket.
Instructions
Prepare a condensed statement of comprehensive income.
Step by Step Answer:
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt