Question

The Massoud Consulting Group reported net income of $1,388,000 for its fiscal year ended December 31, 2021. In addition during the year the company experienced a positive foreign currency translation adjustment of $410,000 and an unrealized loss on debt securities of $60,000. The company's effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income is displayed net of tax. Required: Prepare a separate statement of comprehensive income for 2021. (Amount to be deducted should be indicated with a minus sign.) THE MASSOUD CONSULTING GROUP Statement of Comprehensive Income For the Year Ended December 31, 2021 Net income Other comprehensive income, net of tax: Foreign currency translation adjustment Loss on debt securities Total other comprehensive income Comprehensive income

Answer 1

Answer

--Requirement asked

Statement of Comprehensive Income
Net Income		$1,388,000
Other comprehensive income (loss):
Foreign currency translation gain, net of tax ($410000 x (100%-25%)	$307,500
Unrealized losses on investment securities net of tax ($60000 x (100%-25%)	($45,000)
Total other comprehensive income		$262,500
Comprehensive Income		$1,650,500