A Corporation Is Developing Financial Statements for the Year Ended

question 127

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: $\begin{array} { | l | l | } \hline \text { Revenues } & \$ 420,000 \\\hline \text { Expenses } & 360,000 \\\hline \text { Loss from Discontinued Operations (pre-tax) } & 24,000 \\\hline \text { Correction of prior years' error, (credit) } & 22,000 \\\hline\end{array}$ 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.

---

Definitions:

Economic Growth

An increase in a country's output of goods and services over time, often measured as the rate of change in real GDP.

Specialized Equipment

Machinery or tools designed for a specific task or industry, often crafted to perform particular functions that general equipment cannot.

Layout

The arrangement of elements or components within a given space, often relating to design, manufacturing, or architectural planning.

Manufacturing Business

A type of business that produces finished goods from raw materials by using various processes and operations.