Terwilliger Corporation owns a number of cruise ships and a chain of hotels. The

Question

Terwilliger Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2017. The 2017 operating results for the company were as follows. Operating revenues $12,885,000 Operating expenses 8,640,000 Operating income $ 4,245,000 Analysis discloses that these data include the operating results of the hotel chain, which were operating revenues $1,990,000 and operating expenses $2,440,000. The hotels were sold at a gain of $188,000 before taxes. This gain is not included in the operating results. During the year, Terwilliger had an unrealized loss on its available-for-sale securities of $798,000 before taxes, which is not included in the operating results. In 2017, the company had other revenues and gains of $108,000, which are not included in the operating results. The corporation is in the 34% income tax bracket. Prepare a statement of comprehensive income.

Explanation / Answer

Statement of comprehensive income Particulars Amount($) Operating revenues        12,885,000 Operating expenses        (8,640,000) Operating income           4,245,000 Other comprehensive income: Gain on sale of Hotel Divison              188,000 unrealized loss on its available-for-sale securities            (798,000) Other revenue & gain              108,000 Profit Before Tax           3,743,000 Less: Tax (34%)        (1,272,620) Profit After Tax           2,470,380

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