Question
Duke Companys records show the following account balances at December 31, 2021: Sales revenue $ 18,800,000 Cost of goods sold 10,900,000 General and administrative expense
Duke Companys records show the following account balances at December 31, 2021:
Sales revenue | $ | 18,800,000 |
Cost of goods sold | 10,900,000 | |
General and administrative expense | 1,190,000 | |
Selling expense | 690,000 | |
Interest expense | 890,000 | |
Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount.
- $490,000 in restructuring costs were incurred in connection with plant closings.
- Inventory costing $590,000 was written off as obsolete. Material losses of this type are considered to be unusual.
- It was discovered that depreciation expense for 2020 was understated by $69,000 due to a mathematical error.
- The company experienced a negative foreign currency translation adjustment of $390,000 and had an unrealized gain on debt securities of $370,000.
Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2021. The companys effective tax rate on all items affecting comprehensive income is 25%. 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.)
DUKE COMPANY Statement of Comprehensive Income For the Year Ended December 31, 2021 Gross profit Operating expenses: Total operating expenses Operating income Other income (expense): Income before income taxes Net income Other comprehensive income, net of tax: Total other comprehensive income (loss) Comprehensive incomeStep 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