A corporation is developing financial statements for the year ended December 31,2010.The average income tax rate is 30 percent.The following pre-tax data are available: $$\begin{array} { |l | r| }
\hline\text { Revenues. . . . . . . . . . . . . . . . } & \$ 420,000 \
\hline\text { Expenses. } . \ldots . \ldots \ldots \ldots & 360,000\\hline
\end{array}$$ Loss from Discontinued Operations (pre-tax)$\quad$$\quad$24,000
Correction of prior years' error, (credit).$\quad$$\quad$$\quad$$\quad$22,000 Unrealized foreign exchange gain on translation of foreign subsidiary (net of tax) $10,000
Required:
Assuming all of the above items are subject to the average tax rate of 30%,prepare a statement of Comprehensive Income for the year ended December 31,2010.

Question

A corporation is developing financial statements for the year ended December 31,2010.The average income tax rate is 30 percent.The following pre-tax data are available: $$\begin{array} { |l | r| } 
\hline\text { Revenues. . . . . . . . . . . . . . . . } & \$ 420,000 \
\hline\text { Expenses. } . \ldots . \ldots \ldots \ldots & 360,000\\hline
\end{array}$$ Loss from Discontinued Operations (pre-tax)$\quad$$\quad$24,000
Correction of prior years' error, (credit).$\quad$$\quad$$\quad$$\quad$22,000 Unrealized foreign exchange gain on translation of foreign subsidiary (net of tax) $10,000
Required:
Assuming all of the above items are subject to the average tax rate of 30%,prepare a statement of Comprehensive Income for the year ended December 31,2010.

Quizplus · Accepted Answer

The Answer of A corporation is developing financial statements for the year ended December 31,2010.The average income tax rate is 30 percent.The following pre-tax data are available: $$\begin{array} { |l | r| } 
\hline\text { Revenues. . . . . . . . . . . . . . . . } & \$ 420,000 \
\hline\text { Expenses. } . \ldots . \ldots \ldots \ldots & 360,000\\hline
\end{array}$$ Loss from Discontinued Operations (pre-tax)$\quad$$\quad$24,000
Correction of prior years' error, (credit).$\quad$$\quad$$\quad$$\quad$22,000 Unrealized foreign exchange gain on translation of foreign subsidiary (net of tax) $10,000
Required:
Assuming all of the above items are subject to the average tax rate of 30%,prepare a statement of Comprehensive Income for the year ended December 31,2010.

A Corporation Is Developing Financial Statements for the Year Ended