Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tailwind, Inc. provided the following income statement for the year ended December 31, 2021. All income is subject to a total of 40% tax. TAILWIND,

Tailwind, Inc. provided the following income statement for the year ended December 31, 2021.
All income is subject to a total of 40% tax.
TAILWIND, INC.
Income statement
December 31, 2021
Sales $ 12,000
Cost of Goods Sold 4,000
Gross Profit 8,000
Operating Expenses 5,000
Operating Income 3,000
Income Tax Expense (at 40%) 1,200
Net Income $ 1,800
The company also had $375 of unrealized holding gains on its available-for-sale (long-term)
investment portfolio.
Prepare a statement of comprehensive income using the one-statement approach.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Risk Based Approach to Conducting a Quality Audit

Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg

10th edition

1305080572, 978-1305465664, 1305465660, 978-1305080577

More Books

Students also viewed these Accounting questions