Question

An inexperienced accountant for Concord Corporation showed the following in the income statement: income before income taxes $381,000 and unrealized gain on available-for-sale securities (before taxes) $85,700. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 30% tax rate. Prepare a correct statement of comprehensive income.

Answer 1

Answer:

Explanation:

A statement of comprehensive income is s financial performance statement that lists a detailed flow of net income and unrealized income towards profit / loss making

Statement of comprehensive income

Income before tax - 381,000

Income tax at 30%- (114,300)

Net Income -             266,700

Other income

Unrealized gain on available for sale securities

                                    85,700

Income tax at 30%    (25,710)

                                    60,530

Comprehensive income = 327,230