Problem 4 8 (Algo) Multiple step statement of income and comprehensive income LO4 1, 4 3, 4 5, 4 6 Duke Companys records show the following account balances at December 31, 2021 Sales revenue $ 18,400,000 Cost of goods sold 10,700,000 General and administrative expense 1,170,000 Selling expense 670,000 Interest expense 870,000 Income tax expense has not yet been determined The following events also occurred during 2021 All transactions are material in amount $470,000 in restructuring costs were incurred in connection with plant closings Inventory costing $570,000 was written off as obsolete Material losses of this type are considered to be unusual It was discovered that depreciation expense for 2020 was understated by $67,000 due to a mathematical error The company experienced a negative foreign currency translation adjustment of $370,000 and had an unrealized gain on debt securities of $350,000 Required Prepare a single, continuous multiple step statement of comprehensive income for 2021 The companys 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 )

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

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 12, 2024

Problem 4-8 (Algo) Multiple-step statement of income and comprehensive income [LO4-1, 4-3, 4-5, 4-6] Duke Companys records show the following account balances at December 31,

Problem 4-8 (Algo) Multiple-step statement of income and comprehensive income [LO4-1, 4-3, 4-5, 4-6]

Duke Companys records show the following account balances at December 31, 2021:


Sales revenue	$	18,400,000
Cost of goods sold		10,700,000
General and administrative expense		1,170,000
Selling expense		670,000
Interest expense		870,000

Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount.

$470,000 in restructuring costs were incurred in connection with plant closings.
Inventory costing $570,000 was written off as obsolete. Material losses of this type are considered to be unusual.
It was discovered that depreciation expense for 2020 was understated by $67,000 due to a mathematical error.
The company experienced a negative foreign currency translation adjustment of $370,000 and had an unrealized gain on debt securities of $350,000.

Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2021. The companys 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.)