Question

The trial balance of Kroeger Inc. included the following accounts as of December 31, 2021: Debits Credits 8, 220,000 62,000 122,000 141,000 Sales revenue Interest revenue Gain on sale of investments Gain on debt securities Loss on projected benefit obligation Cost of goods sold Selling expense Goodwill impairment loss Interest expense General and administrative expense 162,000 6,080,000 620,000 490,000 32,000 520,000 The gain on debt securities represents the increase in the fair value of debt securities and is classified a component of other comprehensive income. Kroeger had 300,000 shares of stock outstanding throughout the year. Income tax expense has not yet been recorded. The effective tax rate is 25%. Required: Prepare a 2021 separate statement of comprehensive income for Kroeger Inc. (Amounts to be deducted should be indicated with a minus sign.)

Answer 1

Answer-
KROEGER INC.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31,2021
PARTICULARS	AMOUNT	AMOUNT
	$	$
Sales Revenue		$      8,220,000
Less- Cost of goods sold		-$     6,080,000
Gross Profit		$      2,140,000
Less- Operating Expenses
Selling expense	$       620,000
General & administrative expense	$       520,000
Goodwill impairment loss	$       490,000
Total operating expenses		-$     1,630,000
Operating Income		$         510,000
Other income (expense)
Gain on sale of investments	$       122,000
Interest revenue	$         62,000
Less- Interest expense	-$         32,000
Total other income, net		$         152,000
Income before income taxes		$         662,000
Less- Income taxes	662000*25%	$         165,500
Net Income		$         496,500
Other Comprehensive income
Gain on debt securities, net of tax	141000*(1-.25)	$         105,750
Loss on projected benefit obligation, net of tax	162000*(1-.25)	-$        121,500
Total other Comprehensive income		-$          15,750
Comprehensive income (a)		$         480,750
No. of outstanding shares (b)		300000
Earning per share (c=a/b)		1.655