Comprehensive Income items Available for Sale securities cost = 5, 500, 000 Market = 5, 235, 000 / assumed one zero is value missing in the question ) The value has come down, hence it has to be recorded at market value and has to affected against comprehensive income. Loss unrealised loss = 5, 500, 000 - 5, 235,000 = 2/65, 600 Debut unscalised loss - other comprehensive income 365,do0 credit Jo available for sale securities 2, 65,000Tax information & implications ! $1500 in meal & entertainment expense show as a permanent difference. For permanent difference deferred tax asset or liability account is elected. It is due to disallowance as per tax laws and cannot be revered. No Journal entry will be passed giving affect to DTA/ DTL. But additional tan will be paid to the extent of amount not allowed as a deduction.. Depreciation. Since depreciation is higher in tax books compared to accounts it will result in deferred tax asset, DTA to be affected = 209301 x 25. 10D = 52, 325.25 Debit Deferred tax asset a/c 52,325.25 credit Jo projet floss alc 52, 325. 25Stockholders equity Allor tax proju = $600,000 Issuing 10%,100 par- convertible prefered stock. In to be paid = 100 0,000 X 10 Dividend 100 Revised after tax profi = 6,10,000 - 1,00,000 = 5/00,000 ? The earnings per share would come down as carnings per share is calculated post considering, preferred dividend