Ask Question
13 September, 06:11

In its proposed 2017 income statement, Ayayai Corp. reports income before income taxes $548,000, income taxes $82,200 (not including unusual items), loss on operation of discontinued music division $62,100, gain on disposal of discontinued music division $46,500, and unrealized loss on available-for-sale securities $160,000. The income tax rate is 15%.

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

+2
Answers (1)
  1. 13 September, 06:24
    0
    Answer and Explanation:

    Given:

    Net income before income tax = $548,000

    Income tax = $82,200

    Loss on discounted music (less tax) = $62,100 - (15% of $62,100) = $52,785

    Gain on discounted music (less tax) = $46,500 - (15% of $46,500) = $39,525

    Unrealized loss = $160,000 - (15% of $160,000) = $136,000

    Statement Of Comprehensive Income

    Particular Amount

    Net income before income tax $548,000

    Less: Income tax $82,200

    Income from Operations $465,800

    Less: Loss on discounted music (less tax) $52,785

    Add: Gain on discounted music (less tax) $39,525

    Net income before unrealized loss $452,540

    Less: Unrealized loss $136,000

    Comprehensive income $316,540
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “In its proposed 2017 income statement, Ayayai Corp. reports income before income taxes $548,000, income taxes $82,200 (not including ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers