Reporting a Comprehensive Income Statement

Wagner Inc. has service revenue of $2,000,000, operating expenses of $1,200,000, and an unrealized holding loss of $100,000 on debt security investments for the year ended December 31, 2020. Its income tax rate is 25%.

Required

a. Prepare a single continuous statement of comprehensive income. Ignore earnings per share disclosures.

• Do not use negative signs with any of your answers.

Wagner Inc.
Statement of Comprehensive Income
For the Year Ended December 31, 2020
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options:

Comprehensive income

Income before income tax

Income tax expense

Net income

Operating expenses

Service revenue

Unrealized holding loss on security investments, net of tax

b. Prepare two separate statements of income and comprehensive income. Ignore earnings per share disclosures.

• Do not use negative signs with any of your answers.

Wagner Inc.
Income Statement
For the Year Ended December 31, 2020
?			?
?			?
?			?
?			?
?			?

Wagner Inc.
Statement of Comprehensive Income
For the Year Ended December 31, 2020
?			?
?			?
?			?

options:

Comprehensive income

Income before income tax

Income tax expense

Net income

Operating expenses

Service revenue

Unrealized holding loss on security investments, net of tax

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