Problem #4 The following income statement items appeared on the adjusted trial balance of Corona Corporation for the year ended December 31, 2019 ($ in 000s): sales revenue, $22,600; cost of goods sold, $14,650; selling expense, $2,330; general and administrative expense, $1,230; dividend revenue from investments, $230; interest expense, $330. Income taxes have not yet been accrued. The company's income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2019 ($ in 000s). All transactions are material in amount 1) Investments were sold during the year at a loss of $330. Corona also had an unrealized loss of $230 for the year on investments. The unrealized loss represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income. 2) One of the company's factories was closed during the year. Restructuring costs incurred were $2,300 3) During the year, Corona completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $830 in 2019 prior to the sale, and its assets were sold at a loss of $1,740. 4) A positive foreign currency translation adjustment for the year totaled $570. Required: Use the worksheet provided in the answer packet. Prepare Corona's single, continuous statement of comprehensive income for 2019, including earnings per share disclosures. Use a multiple-step income statement format. Three million shares of common stock were outstanding throughout the year. (Present your answers in thousands of dollars, except earnings per share. Amounts to be deducted should be indicated with parentheses. Round Earnings per share answers to two (2) decimal places.) Problem #4 The following income statement items appeared on the adjusted trial balance of Corona Corporation for the year ended December 31, 2019 ($ in 000s): sales revenue, $22,600; cost of goods sold, $14,650; selling expense, $2,330; general and administrative expense, $1,230; dividend revenue from investments, $230; interest expense, $330. Income taxes have not yet been accrued. The company's income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2019 ($ in 000s). All transactions are material in amount 1) Investments were sold during the year at a loss of $330. Corona also had an unrealized loss of $230 for the year on investments. The unrealized loss represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income. 2) One of the company's factories was closed during the year. Restructuring costs incurred were $2,300 3) During the year, Corona completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $830 in 2019 prior to the sale, and its assets were sold at a loss of $1,740. 4) A positive foreign currency translation adjustment for the year totaled $570. Required: Use the worksheet provided in the answer packet. Prepare Corona's single, continuous statement of comprehensive income for 2019, including earnings per share disclosures. Use a multiple-step income statement format. Three million shares of common stock were outstanding throughout the year. (Present your answers in thousands of dollars, except earnings per share. Amounts to be deducted should be indicated with parentheses. Round Earnings per share answers to two (2) decimal places.)
