A Corporation Is Developing Financial Statements for the Year Ended

question 14

Essay

A corporation is developing financial statements for the year ended December 31,2010.The average income tax rate is 30 percent.The following pre-tax data are available: $$\begin{array} { |l | r| } \hline\text { Revenues. . . . . . . . . . . . . . . . } & \$ 420,000 \\\hline\text { Expenses. } . \ldots . \ldots \ldots \ldots & 360,000\\\hline\end{array}$$ Loss from Discontinued Operations (pre-tax) $\quad$$\quad$ 24,000
Correction of prior years' error, (credit). $\quad$$\quad$$\quad$$\quad$ 22,000 Unrealized foreign exchange gain on translation of foreign subsidiary (net of tax) $10,000
Required:
Assuming all of the above items are subject to the average tax rate of 30%,prepare a statement of Comprehensive Income for the year ended December 31,2010.

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Definitions:

Brand Awareness Rate

A measure of how recognizable a brand is among its target audience and the extent to which consumers are able to identify the brand under different conditions.

Place-Based Media

Advertising and promotional material specifically designed and located in particular places where certain groups of people gather or pass by, such as malls, offices, and public transportation.

Nontraditional Advertising

Marketing efforts that utilize unique methods outside of standard broadcast, print, and online advertisements to reach consumers.

Continuous Schedule

A media scheduling strategy that spreads advertising evenly across the entire planning period, without interruption.