Statement of Comprehensive Income, Single- and Two-Statement Approaches.Tortarella Timber Company provided the following information for the current year:
Operating income amounted to $345,000.
The company sold investments in bonds at a pretax loss of $23,500.
Tortarella reported a $5,600 unrealized loss on an available-for-sale portfolio that is included in other comprehensive income.
The company reported a $12,000 unrealized gain on its trading portfolio, which is included in net income.
Tortarella committed to discontinue its retail lumber stores division on January 1 of the current year. The retail lumber stores meet the criteria to be presented as a discontinued operation. The retail lumber stores accounted for 15% of the company’s operating income. The stores were operated all year.
The retail lumber stores division was sold at December 31 of the current year for a $16,850 pre-tax loss. There was no gain or loss on remeasurement on January 1.
The company is subject to a 30% income tax rate.
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Prepare a single statement of comprehensive income beginning with operating income.
Prepare separate statements of income and comprehensive income.