10. The following information relates to Nabiaco Corporation for the year ended

Question

10. The following information relates to Nabiaco Corporation for the year ended December 31, 2017. All amounts are before income taxes. Assume a 25% income tax rate for ail items. Net saies Other expenses and losses Operating expenses öther revenues and gains Cost of goods sold Unrealized loss on available-for sale securities 1.o50,0oo S 100, 000 s 200,000 60,000 S 450, 000 s 50,0o0 Additional information: The entire snack division was discontinued on September 30. The loss from operations for this division before income tax was $60, 000. The snack division was sold at a gain of s40, 000 before income taxes. Instroctions Prepare a statement of comprehensive income for the year in good form. Make sure to include all the proper subtotals.

Explanation / Answer

Nabisco Corporation

Statement of Conprehensive Income as follow :

Net Sales 1050000

Cost of Goods Sold 450000

Operating Expense 200000

Other Expense & Loss 100000

Total 300000

Add : Other Revenues & Gain 60000

Total 360000

Less : Unrealized loss on

available for sale security 50000

Total 310000

Less : Loss from operation 60000

Add : Gain from Snack Divison 40000

Total Income 290000

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