Exercise 14-13 Trayer Corporation has income from continuing operations of $290,

Question

Exercise 14-13 Trayer Corporation has income from continuing operations of $290,000 for the year ended December 31, 2017. It also has the folliowing items (before considering income taxes). 1. An unrealized loss of $80,000 on available-for-sale securities. 2. A gain of $30,000 on the discontinuance of a division (comprised of a $10,000 loss from operations and a $40,000 gain on disposal). 3. A correction of an error in last year's financial statements that resulted in a $20,000 understatement of 2016 net income. Assume all items are subject to income taxes at a 20% tax rate. Prepare a statement of comprehensive income, beginning with income from continuing operations. TRAYER CORPORATION Partial Statement of Comprehensive Income Version 4.24.7. vacy Policy 1 20002018 John Wiley&Sons;, Inc. All Rights Reserved. A Division of John Wiley &Sons;, Inc 6:14 P 7/9/2 O2

Explanation / Answer

Solution for Excercise 14-13

**correction of prior period item will not be reflected in current year income statement

As per Chegg Policy only first question can be solved. Kindly upload rest of the question as seperate question.

Trayer Corporation Partial Statement of Comprehensive Income Income from continuing operation $290,000 Discontinued operation: Gain from discontinuance of operation [30000*(1-.20)] $24,000 Income before extraordinary income/loss $314,000 Extraordinary loss    [80000(1-.20)] -$64,000 Net income $250,000

**correction of prior period item will not be reflected in current year income statement

As per Chegg Policy only first question can be solved. Kindly upload rest of the question as seperate question.

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