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Posted by: Christian
Price Quoted by Student: $5
Posted On: 2011-11-17 12:12:53
 
Question

P 4-8 Duke Company's records show the following account balances at December 31, 2011

 

P 4-8 Multiple-step statement of income and comprehensive income

 

Duke Company's records show the following account balances at December 31, 2011:

Sales................................................................................ $15,000,000

Cost of goods sold.......................................................... 9,000,000

General and administrative expenses................................. 1,000,000

Selling expenses.............................................................. 500,000

Interest expense............................................................... 700,000

 

P 4-8 Income tax expense has not yet been determined. The following events also occurred during 2011. All transactions are material in amount.

 

1. $300,000 in restructuring costs were incurred in connection with plant closings.

2. The company operates a factory in South America. During the year, the foreign government took over (expropriated) the factory and paid Duke $1,000,000, which was one-fourth of the book value of the assets involved.

3. Inventory costing $400,000 was written off as obsolete. Material losses of this type are not considered to be unusual.

4. It was discovered that depreciation expense for 2010 was understated by $50,000 due to a mathematical error.

5. The company experienced a foreign currency translation adjustment loss of $200,000 and had unrealized gains on securities available for sale of $180,000.

 

Required:

Prepare a combined multiple-step statement of income and comprehensive income for 2011. 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.


Solutions
Problem 4-8   DUKE COMPANY Statement of In
Price $5
Attachment 1: P 4-8 Duke Companys.doc
Solution Posted By: Christian    Posted on: 17-11-2011