Options for drop-down arrows: Exercise 13-1 For its fiscal year ending October 3

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Exercise 13-1 For its fiscal year ending October 31, 2017, Riverbed Corp reports the following partial data shown below $660,000 96,220 Income before income taxes Income tax expense (17% x $566,000) Income from continuing operations Loss on discontinued operations Net income 94,400 $469,380 The loss on discontinued operations was comprised of a $32,200 loss from operations and a $62,200 loss from disposal. The income tax rate is 17% on all items. Prepare a correct statement of comprehensive income, beginning with income before income taxes. RIVERBED CORP Partial Statement of Comprehensive Income

Explanation / Answer

Partial statement of Comprehensive Income For the year ended October 31 2017 Income before Income taxes $660,000 Less: Income tax expense (660000*17%) 112200 Income from continuing operations $547,800 Discountinued operations Loss from operation (net of taxes $32200*83%) 26726 Loss on disposal (62200*83%) 51626 78352 Net Income $469,448 The answer should be above But as per the question data tax is charged on $566000*17% 96220 But in actual it should have been 96492 (660000-92400)*17% Hence answer is different If any doubt please comment so in that case answer should be Partial statement of Comprehensive Income For the year ended October 31 2017 Income before Income taxes $660,000 Less: Income tax expense (660000*17%) 112200 Income from continuing operations $547,800 Discountinued operations Loss from operation (net of taxes $32000*83%) 26560 Loss on disposal (62000*83%) 51460 78020 Net Income $469,780

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