Duke Company's records show the following account balances at December 31, 2018 Sales$18,000,000Cost of goods sold10,500,000General and administrative expenses1,150,000Selling expenses650,000Interest expense850,000 Income tax expense has not yet been determined The following events also occurred during 2018 All transactions are material in amount $450,000 in restructuring costs were incurred in connection with plant closings Inventory costing $550,000 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 $65,000 due to a mathematical error The company experienced a negative foreign currency translation adjustment of $350,000 and had unrealized gains on investments of $330,000 Required Prepare a single, continuous multiple step statement of comprehensive income for 2018 The company's 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 ) rev 09 28 2018 QC CS 140907

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 28, 2024

Duke Company's records show the following account balances at December 31, 2018: Sales$18,000,000Cost of goods sold10,500,000General and administrative expenses1,150,000Selling expenses650,000Interest expense850,000 Income tax expense has

Duke Company's records show the following account balances at December 31, 2018:

Sales$18,000,000Cost of goods sold10,500,000General and administrative expenses1,150,000Selling expenses650,000Interest expense850,000

Income tax expense has not yet been determined. The following events also occurred during 2018. All transactions are material in amount.

$450,000 in restructuring costs were incurred in connection with plant closings.
Inventory costing $550,000 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 $65,000 due to a mathematical error.
The company experienced a negative foreign currency translation adjustment of $350,000 and had unrealized gains on investments of $330,000.

Required:

Prepare a single, continuous multiple-step statement of comprehensive income for 2018. The company's 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.)

rev: 09_28_2018_QC_CS-140907