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Duke Company's records show the following account balances at December 31, 2021: Sales revenue Cost of goods sold General and administrative expense Selling expense Interest
Duke Company's records show the following account balances at December 31, 2021: Sales revenue Cost of goods sold General and administrative expense Selling expense Interest expense $16,800,000 9,900,000 1,090,000 590,000 790,000 Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount. 1. $390,000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $490,000 was written off as obsolete. Material losses of this type are considered to be unusual. 3. It was discovered that depreciation expense for 2020 was understated by $59,000 due to a mathematical error. 4. The company experienced a negative foreign currency translation adjustment of $290,000 and had an unrealized gain on debt securities of $270,000. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2021. The company's 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.) For the Year Ended December 31, 2021 Sales revenue $ 16,800,000 (9,900,000) 6,900,000 Cost of goods sold Gross profit Operating expenses: General and administrative expenses Selling expenses Restructuring costs Loss on inventory write-down $ 1,090,000 590,000 390,000 490,000 Total operating expenses Operating income Other income (expense): 2,560,000 4,340,000 Interest expense (790,000) Income before income taxes Income tax expense 3,550,000 (887,500) 2,662,500 Net income Other comprehensive income, net of tax: Foreign currency translation adjustment Loss on sale of investments 0 Total other comprehensive income (loss) Comprehensive income $ 2,662,500
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