Duke Companys records show the following account balances at December 31, 2013 Sales $ 18,200,000 Cost of goods sold 10,600,000 General and administrative expenses 1,160,000 Selling expenses 660,000 Interest expense 860,000 Income tax expense has not yet been determined The following events also occurred during 2013 All transactions are material in amount 1 $460,000 in restructuring costs were incurred in connection with plant closings 2 The company operates a factory in South America During the year, the foreign government took over (expropriated) the factory and paid Duke $1,160,000, which was one fourth of the book value of the assets involved The factory is not a component of the entity and the event is considered to be unusual and infrequent 3 Inventory costing $560,000 was written off as obsolete Material losses of this type are not considered to be unusual 4 It was discovered that depreciation expense for 2012 was understated by $66,000 due to a mathematical error 5 The company experienced a foreign currency translation adjustment loss of $360,000 and had unrealized gains on investments of $340,000 Required Prepare a single, continuous multiple step statement of comprehensive income for 2013 The companys effective tax rate on all items affecting comprehensive income is 40 Each component of other comprehensive income should be displayed net of tax Ignore EPS disclosures (Amounts to be deducted should be indicated with a minus sign )

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Posted on Sep 14, 2024

Duke Companys records show the following account balances at December 31, 2013: Sales $ 18,200,000 Cost of goods sold 10,600,000 General and administrative expenses 1,160,000

Duke Companys records show the following account balances at December 31, 2013:


Sales	$	18,200,000
Cost of goods sold		10,600,000
General and administrative expenses		1,160,000
Selling expenses		660,000
Interest expense		860,000

Income tax expense has not yet been determined. The following events also occurred during 2013. All transactions are material in amount.

1.	$460,000 in restructuring costs were incurred in connection with plant closings.
2.	The company operates a factory in South America. During the year, the foreign government took over (expropriated) the factory and paid Duke $1,160,000, which was one-fourth of the book value of the assets involved. The factory is not a component of the entity and the event is considered to be unusual and infrequent.
3.	Inventory costing $560,000 was written off as obsolete. Material losses of this type are not considered to be unusual.
4.	It was discovered that depreciation expense for 2012 was understated by $66,000 due to a mathematical error.
5.	The company experienced a foreign currency translation adjustment loss of $360,000 and had unrealized gains on investments of $340,000.

Required:

Prepare a single, continuous multiple-step statement of comprehensive income for 2013. The companys effective tax rate on all items affecting comprehensive income is 40%. Each component of other comprehensive income should be displayed net of tax. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)