Question
Duke Companys records show the following account balances at December 31, 2018: 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, 2018:
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 2018. All transactions are material in amount.
- $460,000 in restructuring costs were incurred in connection with plant closings.
- Inventory costing $560,000 was written off as obsolete. Material losses of this type are considered to be unusual.
- It was discovered that depreciation expense for 2017 was understated by $66,000 due to a mathematical error.
- The company experienced a negative foreign currency translation adjustment of $360,000 and had unrealized gains on investments of $340,000.
Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2018. 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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