PART $1$

Gecko Inc. manufactures snowboards and outdoor clothing. For year ended December $31,2023,$ the company had Net Income

after tax of $$120,000.$ The following items are included in Comprehensive Income for $2023$:

$1.$ Income tax rate was $40\%.$

$2.$ On October $1,2023,$ Gecko decided to sell its clothing business which earned $$34,000$ of pre$-$tax income $($included above$).$

It is expected to sell on May $12024$ for $$120,000$ so it can focus on the snowboard business. The NBV of the clothing business

assets was $$160,000$ and an estimated disposal loss of $$40,000$ has been included in net income for $2023.$ After incurring an

estimated operating loss before tax of $$14,000$ in $2024,$ legal fees of $$10,000$ are estimated to complete the sale transaction.

$3.$ During $2023,$ there was a small uninsured fire in one of the snowboard warehouses. Luckily, the fire did not spread to the

entire location but $$32,000$ of goods were still lost and charged to COGS.

$4.$ On January $15,2024,$ one of Gecko$$s larger customers declared bankruptcy and it$$s unlikely anything will ever be collected.

At year end, the related receivable was $$10,000$ offset by an AFDA of $$3,000.$

$5.$ Before completing the $2023$ year end financials, it was discovered that one of the snowboard manufacturing machines,

purchased in $2022$ for $$10,000,$ had been expensed when it should have been depreciated SL over $5$ years. The $2023$ income

has been adjusted to correct the error but no correction has yet been made for $2022$ when closing retained earnings before

adjustment was $$450,000.$

$6.$ An unrealized gain of $$61,000$ before tax on a FV$-$OCI Investment was recorded in $2023.$

REQUIRED: Prepare the Comprehensive Income Statement starting from $$Income from Continuing Operations before Taxes$$

followed by the Retained Earnings section of SCE for year ended Dec $3123.....$both in good form.

PART $2$

It is now May $2,2024$ and the clothing business has just been sold for a renegotiated price of $$125,000$ and higher legal fees

of $$12,000$ after actual earnings of $$8,000$ before tax to date of sale.

REQUIRED: Prepare the Discontinued Operations section of the Comprehensive Income Statement for year ended Dec $3124$

in good form and comparatives are not required.