Question

Problem 18-9A The ledger of Jaime Corporation at December 31, 2017, contains the following summary data. Net sales $1,640,000 Cost of goods sold $1,060,000 Selling expenses 118,000 Administrative expenses 149,000 Other revenues and gains 22,000 Other expenses and losses 27,500 Your analysis reveals the following additional information that is not included in the above data. 1. The entire Puzzles Division was discontinued on August 31. The income from operation for this division before income taxes was $23,400. The Puzzles Division was sold at a loss of $87,400 before income taxes. 2. The company had an unrealized gain on available-for-sale securities of $118,000 before income taxes for the year. 3. The income tax rate on all items is 24%. Prepare a statement of comprehensive income for the year ended December 31, 2017. JAIME CORPORATION Statement of Comprehensive Income $ $ $

Answer 1

Answer:

JAIME CORPORATION
Income Statement
For the Year Ended December 31, 2017
Net Sale		$1,640,000
Cost of goods sold		$1,060,000
Gross profit		$580,000
Selling and administrative expenses (118,000+149,000)		$267,000
Income from operations		$313,000
Other revenues and gains	$22,000
Other expenses and losses	($27,500)	($5,500)
Income before income taxes		$307,500
Income tax expense (307500*24%)		$73,800
Income from continuing operations		$233,700
Discontinued operations
Income from operations of discontinued division, net of $5616 income taxes	$18,684
Loss on sale of discontinued division, net $20976 income tax saving	($66,424)	($47,740)
Income before extraordinary item		$185,960
Extraordinary item
Unrealized gain on AFS securities, net of $28320 income taxes		$89,680
Net Income		$279,640