Reporting comprehensive income [5-10 min]Use the RAR data in Short Exercise In addition, R...

Reporting comprehensive income [5-10 min]

Use the RAR data in Short Exercise In addition, RAR had unrealized gains of $4,500 on investments during 2012.

Requirements

1. Start with RAR’s net income from Short Exercise and show how the company could report other comprehensive income on its 2012 income statement.

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2. Should RAR report earnings per share for other comprehensive income?

Preparing a corporate income statement [10-15 min]

RAR Corporation’s accounting records include the following items, listed in no particular order, at December 31, 2012:

Income tax of 30% applies to all items.

Requirement

1. Prepare RAR’s income statement for the year ended December 31, 2012. Omit earnings per share.