For its fiscal year ending October 31, 2022, Swifty Corporation reports the following partial data shown below. Income before income taxes $545,400 Income tax expense (20% * $424,200) 84,840 Income from continuing operations 460,560 Loss on discontinued operations 121,200 Net income $339,360 The loss on discontinued operations was comprised of a $50,500 loss from operations and a $70,700 loss from disposal. The income tax rate is 20% on all items. Prepare a correct statement of comprehensive income, beginning with income before income taxes.

Question

Karly Glenn

Business

30 October, 12:53

For its fiscal year ending October 31, 2022, Swifty Corporation reports the following partial data shown below. Income before income taxes $545,400 Income tax expense (20% * $424,200) 84,840 Income from continuing operations 460,560 Loss on discontinued operations 121,200 Net income $339,360 The loss on discontinued operations was comprised of a $50,500 loss from operations and a $70,700 loss from disposal. The income tax rate is 20% on all items. Prepare a correct statement of comprehensive income, beginning with income before income taxes.

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Kaila Sanford · Answer 1

Swifty Corporation

Statement of Comprehensive Income

October 31, 2022

Income before income taxes $545,400

Income tax expense ($109,080)

Income from continuing operations $436,320

Other comprehensive income (loss):

Loss on discontinued operations ($50,500)

Related tax $10,100

Loss from disposal of assets ($70,700)

Related tax $14,140

Other comprehensive income (loss) net of tax ($96,960)

Comprehensive Income $339,360

Explanation:

income before income taxes $545,400 x 20% = $109,080 tax expense

loss on discontinued operations $50,500 x 20% = $10,100 tax benefit

loss from disposal of assets $70,700 x 20% = $14,410 tax benefit