Turnball Ltd. is developing financial statements for the year
ended December 31, 2019. The average income tax rate is 40 percent.
The following pre-tax data are available:
Revenues |
$420,000 |
Expenses |
360,000 |
Gain from Discontinued Operations (pre-tax) |
24,000 |
Unrealized foreign exchange loss on translation of foreign subsidiary (net of tax) |
10,000 |
Required:
Assuming all of the above items are subject to the average tax rate
of 40%, prepare a statement of Comprehensive Income (in proper
form) for the year ended December 31, 2019.
Turnball Ltd. Statement of Comprehensive Income For the year ended December 31, 2019 |
|
Revenues | 420,000 |
Less: Expenses | (360,000) |
Profit before Tax | 60,000 |
Less: Tax (60,000*40%) | (24,000) |
Profit from Continuing Operations | 36,000 |
Gain from Discontinued Operations [(1-0.4)*24,000] | 14,400 |
Profit for the year | 50,400 |
Unrealized foreign exchange loss on translation of foreign subsidiary (net of tax) | (10,000) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 40,400 |
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