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The Massoud Consulting Group reported net income of $1,368,000 for its fiscal year ended December 31,...

The Massoud Consulting Group reported net income of $1,368,000 for its fiscal year ended December 31, 2021. In addition, during the year the company experienced a positive foreign currency translation adjustment of $310,000 and an unrealized loss on debt securities of $70,000. The company’s effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income is displayed net of tax. Required: Prepare a separate statement of comprehensive income for 2021. (Amount to be deducted should be indicated with a minus sign.

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Answer #1
ANSWER
Explanation :
Particulars Amount Amount
Net income $ 13,68,000
Other comprehensive income,net of tax:
    Foreign currency translation adjustment $    2,32,500
   Loss on debt securities $      -52,500
Total other comprehensive income $    1,80,000
Comprehensive income for 2021 $ 15,48,000
Workings:
Foreign currency translation adjustment = $310,000*(1-25%) =$232,500
Loss on debt securities = $70,000*(1-25%) = $52,500
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