Ask Question
24 July, 16:40

In its proposed 2017 income statement, Ayayai Corp. reports income before income taxes $548,000, income taxes $82,200 (not including unusual items), loss on operation of discontinued music division $62,100, gain on disposal of discontinued music division $46,500, and unrealized loss on available-for-sale securities $160,000. The income tax rate is 15%.

Prepare a correct statement of comprehensive income, beginning with income before income taxes

+4
Answers (1)
  1. 24 July, 20:14
    0
    Answer and Explanation:

    Given:

    Net income before income tax = $548,000

    Income tax = $82,200

    Loss on discounted music (less tax) = $62,100 - (15% of $62,100) = $52,785

    Gain on discounted music (less tax) = $46,500 - (15% of $46,500) = $39,525

    Unrealized loss = $160,000 - (15% of $160,000) = $136,000

    Statement Of Comprehensive Income

    Particular Amount

    Net income before income tax $548,000

    Less: Income tax $82,200

    Income from Operations $465,800

    Less: Loss on discounted music (less tax) $52,785

    Add: Gain on discounted music (less tax) $39,525

    Net income before unrealized loss $452,540

    Less: Unrealized loss $136,000

    Comprehensive income $316,540
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In its proposed 2017 income statement, Ayayai Corp. reports income before income taxes $548,000, income taxes $82,200 (not including ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers