Question

1. 2. Trayer Corporation has income from continuing operations of $278,000 for the year ended December 31, 2020. It also has the following items (before considering income taxes). An unrealized loss of $74,000 on available for sale securities. A gain of $25,000 on the discontinuance of a division (comprised of a $19,000 loss from operations and a 544,000 gain on disposal). Assume all items are subject to income taxes at a 15% tax rate. Prepare a statement of comprehensive income, beginning with income from continuing operations. (Enter loss using either a negative sign preceding the number o.s. -2,945 or parentheses e... (2,945).) TRAYER CORPORATION Partial Statement of Comprehensive Income

Answer 1

TRAYER CORPORATION

Partial Statement of Comprehensive Income

For the year ended December 31,2020

Income from continuing operations		$278,000
Discontinued operations:
Gain from disposal of discountinued division ($44,000 * 85%)	$37,400
Loss from operations of discontinued division ($19,000 * 85%)	($16,150)
		$21,250
Net income		$299,250
Extradinary loss:
Unrealized loss on available for sale securities ($74,000 * 85%)		($62,900)
Comprehensive income		$236,350