Question

Corporation provided the following​ partial-trial balance for the current year.

Prepare a statement of net income and additional disclosures that would meet IFRS requirements. Indicate items that IFRS requires to be reported on the statement of net income.

Carson is subject to a 40​% income tax rate. Use the condensed format.

Carson Corporation

Trial Balance (Selected Accounts)

For the Year Ended December 31

Account

Debit

Credit

Dividends

$1,330

Sales

$190,000

Dividend Income

550

Interest Income

1,200

Gain on Disposal of Plant Assets

1,300

Unrealized Gain on Trading Investments

2,400

Cost of Goods Sold

44,000

Office Supplies Expense

5,000

Sales Salaries Expense

4,300

Selling Expenses

17,000

Accounting and Legal Fees—General Expense

760

Advertising Expense

4,200

Office Salaries Expense

6,300

Depreciation Expense—General Expense

9,200

Interest Expense

2,700

Loss on Asset Impairment

2,300

Begin by preparing a statement of net income that meets IFRS requirements. Indicate items that IFF Carson Corporation Statement of Profit and Loss For the Year Ended December 31 Required Disclosure Less: Net Profit

Answer 1

Required Dislosure 190,000 44,000 146,000 FMV of the asset Carson Corporation Statement of Profit abd Loss For the Year Ended December 31 Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses: Office Supplies Expense 5,000 Sales Salaries Expense 4,300 Selling Expenses 17,000 General Expense 760 Advertising Expense 4,200 Loss on Asset Impairment 2,300 Office Salaries Expense 6,300 Depreciation Expense 9,200 Total Operating Expenses Less: Non-Operating expenses: Interest Expense 2,700 Total Non-Operating expenses Add: Non-Operating Income: Dividend income 550 Gain on Disposal of Plant Assets 1,300 Interest Income 1,200 Total Non-Operating Income Income before income tax Income tax expense (97290*40%) Net Profit Statement of Comprehensive income: Unrealized Gain on Trading Investments Comprehensive income Method of Depreciation 49,060 2,700 Rate of Dividend WDV of asset Rate if interest 3,050 97,290 38,916 58,374 $ $ 2,400 2,400 Note: Dividends will be reported on the statement of stockholders' equity.