Multiple-step statement of income and comprehensive income
Response to the following problem:
Duke Company's records show the following account balances at December 31, 2016:
|
Sales
Cost of goods sold
General and administrative expenses
Selling expenses.
Interest expense
|
$15,000,000
9,000,000
1,000,000
500,000
700,000
|
Income tax expense has not yet been determined. The following events also occurred during 2016. All transactions are material in amount.
1. $300,000 in restructuring costs were incurred in connection with plant closings.
2. Inventory costing $400,000 was written off as obsolete. Material losses of this type are considered to be unusual.
3. It was discovered that depreciation expense for 2015 was understated by $50,000 due to a mathematical error.
4. The company experienced a foreign currency translation adjustment loss of $200,000 and had unrealized gains on investments of $180,000.
Required:
Prepare a single, continuous multiple-step statement of comprehensive income for 2016. The company's effective tax rate on all items affecting comprehensive income is 40%. Each component of other comprehensive income should be displayed net of tax. Ignore EPS disclosures.