Question

Problem 4-8 (Algo) Multiple-step statement of income and comprehensive Income LO4-1, 4-3, 4-5, 4-6) Duke Company's records show the following account balances at December 31, 2020 Cost of good old Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are materiali amount 1 $440.000 in restructuring costs were incurred in connection with plant closings 2. Inventory costing $540,000 was written off as obsolete. Material losses of this type are considered to be unusual. 3. was discovered that depreciation expers for 2020 was understated by S64000 due to a mathematical error 4. The company experienced a negative foreign currency translation adjustment of $340,000 and had an unrealized gain on debt securities of $320.000 Required: Prepare a single, continuous multiple step statement of comprehensive Income for 202L The company's effective tax rate on allems affecting comprehensive income is 25% Each component of other comprehensive income should be displayed net of tax. Ignore EPS disclosures. Amounts to be deducted should be indicated with a minus sign.) DUKE COMPANY Statement of Comprehensive Income For the Year Ended December 31, 2021 Sales revenue Cost of good Oro proft Operating experts Gornal and administrative expenses $ 1,140,000 Salinga perses 640,000 Irrest expense 40.000 Restructuring 440,000 15 17.800.000 140.400,000 7,400,000 HO Total Operating expenses Operating income Other income excer 30.000 Lesson invertory write-down 540,000 3.800.000 950.0001 2.850.000 ncome before comes ncome tax expense Netcome Other comprehensive income of Ganon securities Foreign currency a t Toler comprensive income Comprehensive come 390.000 l340.000 2800.000

Answer 1

	Amount in $	Amount in $
Sales		17800000
Cost of Goods Sold		10400000
Gross Profit		7400000
Operating Expenses
General & Administrative Expenses	1140000
Selling Expense	640000
Restructuring expense	440000
Write off of obsolete inventory	540000
Total Operating Expenses		2760000
Operating Income		4640000
Other Income/Expense
Interest Expense		840000
Income before taxes and extraordinary item		3800000
Income Tax Expense		950000
Income before extraordinary item		2850000
Extraordinary item		0
Net Income		2850000
Other Comprehensive Income (Loss)
ForeiGN Currency Translation adjustment	-255000
Unrealised gains on investment securities	240000
Net other comprehensive income (loss)		-15000
Comprehensive Income		2835000

Notes

Income tax expense = 3800000*25% = $950000

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