DO IT! Review 13-1 In its proposed 2017 income statement, Indigo Corporation rep

Question

DO IT! Review 13-1 In its proposed 2017 income statement, Indigo Corporation reports income before income taxes $499,000, income taxes $79,840 (not including unusual items), loss on operation of discontinued music division $66,800, gain on disposal of discontinued music division $38,400, and unrealized loss on available-for-sale securities $140,000. The income tax rate is 16%. Prepare a correct statement of comprehensive income, beginning with income before income taxes. INDIGO CORPORATION Partial Statement of Comprehensive Income

Explanation / Answer

Correct Statement of Comprehensive Income is as prepared below:

Indigo Corporation Partial Statement of Comprehensive Income For the year ended December 31, 2017 Income before Income taxes 499,000 Income taxes 79,840 Income from continuing operations 419,160 Discontinued operations: Loss on operation of discontinued music division, net of tax (66,800-16%) -56,112 Gain on disposal of discontinued music division, net of tax (38,400-16%) 32,256 Income from dicontinued operations -23,856 Net Income   395,304 Other comprehensive Income Unrealized loss on available for sale securities (140,000-16%) 117,600 Comprehensive income   277,704

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