Question
Clark Companys accountant reported income from continuing operations before extraordinary item of $725,000 for the year ended 2013. The companys income tax rate is 30%.
Clark Companys accountant reported income from continuing operations
before extraordinary item of $725,000 for the year ended 2013. The companys
income tax rate is 30%. The accountant also identified the following transactions that
occurred in 2013:
Due to an incorrect entry, cost of goods sold was overstated by $100,000 in the
year 2012.
The company has one of their operating divisions up for sale. The division
qualifies as a component of the entity according to GAAP. The fair value and
book value of the assets is $1,500,000 and $1,250,000, respectively. In
addition, there was a loss from operations of $400,000 for the year 2013.
Unrealized losses on securities held for sale amounted to $120,000.
What is the amount of comprehensive income that will be reported by Clark?
a. $431,000.
b. $388,500.
c. $361,000.
d. $431,000.
e. $318,500.
f. $402,500.
g. $536,000.
h. None of the above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started