Paxdot Labs Provided the Following Partial Trial Balance for the Current

question 48

Essay

Paxdot Labs provided the following partial trial balance for the current year. Beginning with the line item Operating Income, prepare a statement of net income for the year ended December 31. Paxdot is subject to a 40% income tax rate.
Paxdot Labs
Partial Trial Balance (Selected Accounts)
For the Year Ended December 31
$$\begin{array} { l r r } \text { Accounts } & \text { Debit } & \text { Credit } \\\text { Operating Income } & & \$ 233,000 \\\text { Dividend Income } & & 24,680 \\\text { Gain on Sale of Discontinued Operations } & & 37,010 \\\text { Unrealized Gain on Trading Investments } & & 37,260 \\\text { Gain on Foreign Currency Translation } & 23,030 & \\\text { Loss on Asset Impairment } & 15,420 & \\\text { Loss from Discontinued Operations } & 18,340 &\end{array}$$

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Definitions:

Cash Flow Hedge

A form of hedge accounting that aims to offset exposures to variability in cash flows, attributable to a particular risk associated with a recognized asset or liability.

Forward Contract

A financial contract between two parties to buy or sell an asset at a specified future time at a price agreed upon at the time of the contract.

Net Method

is an accounting method for recording purchases where the purchase is recorded at net of any trade discounts received.

Profit Test

A financial analysis conducted to determine the profitability or financial viability of a project, business, or product.