Question

In its proposed 2017 income statement, Blue Spruce Corp. reports income before income taxes $459,000, income...

In its proposed 2017 income statement, Blue Spruce Corp. reports income before income taxes $459,000, income taxes $82,620 (not including unusual items), loss on operation of discontinued music division $65,700, gain on disposal of discontinued music division $50,900, and unrealized loss on available-for-sale securities $140,000. The income tax rate is 18%.

Prepare a correct statement of comprehensive income, beginning with income before income taxes.

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Answer #1

Prepare a correct statement of comprehensive income, beginning with income before income taxes.

Income before income taxes 459000
Less: Income tax (82620)
Income from continuing operation 376380

Discontinued operation :
Loss on operation of discontinued music division (net of tax) (53874)
Gain on disposal of discontinued music division (net of tax) 41738
Net income 364244
Unrealized loss on available for sale of securities (114800)
Comprehensive income 249444
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