Bandana Company Had the Following Balances for Net Income and Pretax

question 63

Multiple Choice

Bandana Company had the following balances for net income and pretax gains and losses on December 31: The company's effective tax rate is 40%.What amount should Bandana Company report as comprehensive income for the year ended December 31?

• A)$27,600
• B)$44,400
• C)$50,000
• D)$53,600

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Definitions:

Correlation Coefficient

A statistical measure that describes the size and direction of a relationship between two or more variables.

Covariance

A measure of the joint variability of two random variables.

Correlation Coefficient

A numerical index that reflects the linear relationship between two variables, ranging from -1 to 1.

Linear Relationship

A relationship between two variables where the change in one variable is associated with a proportional change in the other variable.