An inexperienced accountant for Concord Corporation showed the following in the income statement: income before income taxes $381,000 and unrealized gain on available-for-sale securities (before taxes) $85,700. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 30% tax rate. Prepare a correct statement of comprehensive income.

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Fawn

Business

25 September, 23:40

An inexperienced accountant for Concord Corporation showed the following in the income statement: income before income taxes $381,000 and unrealized gain on available-for-sale securities (before taxes) $85,700. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 30% tax rate. Prepare a correct statement of comprehensive income.

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Terry Blackburn · Answer 1

A statement of comprehensive income is s financial performance statement that lists a detailed flow of net income and unrealized income towards profit / loss making

Statement of comprehensive income

Income before tax - 381,000

Income tax at 30% - (114,300)

Net Income - 266,700

Other income

Unrealized gain on available for sale securities

85,700

Income tax at 30% (25,710)

60,530

Comprehensive income = 327,230