Question
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.) |
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