Question

Trayer Corporation has income from continuing operations of $256,000 for the year ended December 31, 2020. It also has the following items (before considering income taxes). 1. An unrealized loss of $78,000 on available-for-sale securities. 2. A gain of $26,000 on the discontinuance of a division (comprised of a $14,000 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.g.-2,945 or parentheses e.g. (2,945).) TRAYER CORPORATION Partial Statement of Comprehensive Income

Answer 1

Answer-

TRAYER CORPORATION
PARTIAL STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31,2020
PARTICULARS	AMOUNT	AMOUNT
	$	$
Income from continuing operations		256000
Less- Loss on sale securities	$78000*(1-.16)	65520
Add- Net gain on discontinuance of a division
Gain on disposal of division, net of tax	40000*(1-.16) =33600
Loss of operations, net of tax	14000*(1-.16) =11760
Total other comprehensive income		21840
Comprehensive income		168640