Dos Amugus Company Has Income from Continuing Operations of $621,000

question 239

Essay

Dos Amugus Company has income from continuing operations of $621,000 (after tax) for the year ended December 31, 2017. It also has the following items (before considering income taxes):
(1) An unrealized loss of $120,000 available-for-sale-securities.
(2) A gain of $60,000 on the discontinuance of a major component.
(3) A cumulative effect of a change in accounting principle that resulted in an increase in prior years' depreciation of $50,000.
Assume all items are subject to income taxes at a 30% tax rate.
Instructions
Prepare a statement of comprehensive income, beginning with income from continuing operations.

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Definitions:

Income

Represents the financial earnings of an individual or enterprise, often quantified on a yearly basis.

Utility Function

An economic model representing how a consumer ranks different bundles of goods based on the level of satisfaction or utility they provide.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Income

The amount of money received by an individual or group over a certain period, often derived from work, investments, or business activities.