Question

Brief Exercise 208 Dos Amugus Company has income from continuing operations of $621,000 (after tax) for the year ended December 31, 2017. It also has the following items (before considering income taxes): (1) An unrealized loss of $120,000 available-for-sale-securities. (2) A gain of $60,000 on the discontinuance of a major component. (3) A cumulative effect of a change in accounting principle that resulted in an increase in prior years' depreciation of $50,000. Assume all items are subject to income taxes at a 30% tax rate. Prepare a statement of comprehensive income, beginning with income from continuing operations. DOS AMUGUS COMPANY Partial Statement of Comprehensive Income Question Attempts: 0 of 1 used

Answer 1

Comprehensive income statement depicts the profits and losses from continuing and discontinuing operations. All the gains and losses below are after taxes

Dos Amugus company

                                Partial Statement of Comprehensive Income

Particulars	Amount ($)
Income from continuing operations	621,000
Discontinued operations           Gain on discontinued segment net of tax (60,000 * 30% of 60,000)	42,000
Net income	663,000
Other comprehensive income         Unrealized holding loss, on available for sale securities net of income tax (120,000 – 30% of 120,000)	(84,000)
Comprehensive income	579,000