Question

Trayer Corporation has income from continuing operations of $260,000 for the year ended December 31, 2020. It also has the following items (before considering income taxes). 1. An unrealized loss of $84,000 on available for sale securities. 2. A gain of $25,000 on the discontinuance of a division (comprised of a $15,000 loss from operations and a $40,000 gain on disposal). Assume all items are subject to income taxes at a 16% tax rate. Prepare a statement of comprehensive income, beginning with income from continuing operations. (Enter loss using either a negative sign preceding the number e.o. -2,945 or parentheses eg. (2,945).) TRAYER CORPORATION Partial Statement of Comprehensive Income For the Year Ended December 31, 2020 Income from Continuing Operations 260000 Discontinued Operations Gain from Operations of Discontinued Division

Answer 1

Solution:

Trayer Corporation
Partial Statement of Comprehensive Income
For the year ended October 31, 2020
Income from Continuing Operations		$2,60,000
Discontinued Operations:
Gain from Disposal of Discontinued Division ($40000*84%)	33600
Loss from Operations of Discontinued Division ($15000*84%)	-12600
		21,000
Net Income		$2,81,000
Extraordinary Loss:
Unrealized loss on available for sale securities ($84000*84%)		-70560
Comprehensive Income		$2,10,440