For its fiscal year ending October 31, 2025, Douglas Limited reports the following partial data shown below.

The loss on discontinued division consists of £60,000 loss from operations of the division and £90,000 loss on disposal of the division. The income tax rate is 30% on all items.
Instructions

a. Prepare a correct statement of comprehensive income, beginning with income before income taxes.

b. Explain in an email why the income statement data are misleading.
Prepare statement of comprehensive income.

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Income before income taxes 550,000 Income tax expense (30% 400,000) 120,000 Income before discontinued operations 430,000 Loss on discontinued division 150,000 Net income 280,000