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:

Avoidance Strategies

Techniques or methods employed to bypass or deflect potential conflicts, confrontations, or undesirable situations.

Unilateral Choice

A decision or action taken by one party independently without consultation or agreement with others.

Substantive Outcomes

The concrete and measurable results of a negotiation or decision-making process, such as terms of agreement, policy changes, or financial settlements.

Relationship Quality

The overall assessment of the strength, health, and positivity of the bond between individuals or groups.