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ooo T-Mobile Wi-F12:30 PM Done a edugen.wileyplus.com C Do It! Review 13-1 Your

ID: 2520078 • Letter: O

Question

ooo T-Mobile Wi-F12:30 PM Done a edugen.wileyplus.com C Do It! Review 13-1 Your answer is partially correct. Try again. In its proposed 2017 income statement, Novak Corp. reports income before income taxes $620,000, income taxes $148,800 (not including unusual items), loss on operation of discontinued music division $61,000, gain on disposal of discontinued music division $59,500, and unrealized loss on available-for-sale securities $136,000. The income tax rate is 24%. Prepare a correct statement of comprehensive income, beginning with income before income taxes. NOVAK CORP. Click if you would like to Show Work for this question: Opn ShoWork Question Attempts: 1 of 5 used AVE FOR LATER SUBMIT ANSWER

Explanation / Answer

Correct statement of comprehensive Income

Income before income tax $ 620000

Less: Income Tax $ 148800

( 620000*.24)

Income after income tax $ 471200

loss from discontinue business $ 61000

Gain from disposal of discoutinue $ 59500

net loss from discoutinue business $ (1500)

tax adjusment (1500*.24) $ 360

net loss from discontinue after tax adjustment $ ( 1140)

Net Income after all adjustment

( $ 471200 - $ 1140) $ 470060

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unrealised loss on available for sale securities $ 136000 is loss on paper it is unrealised , Realised when securities sale, its accumulated so only shown in balance sheet.