Financial accounting question A company failed to record unrealized gains of $30 millionon its available-for-sale security investments. Its tax rateis 35%. As a result of this error, comprehensive incomewould be (Round million answer to 2 decimal places.):A. Understated by $30.00 million.B. Unaffected.C. Understated by $10.50 million.D. Understated by $19.50 million.

Step 1: Comprehensive IncomeComprehensive income combines net income and other unrealized gains from…

Answered: A company failed to record unrealized…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

See similar textbooks

Similar questions

Answer? ? General Accounting
A company failed to record unrealized gains of $25 million on its available-for-sale security investments. Its tax rate is 40%. As a result of this error, comprehensive income would be (Round million answer to 2 decimal places.):
I need this question general accounting
A company failed to record unrealized gains of $28 million on its available for sale debt security investments. Its tax rate is 25%. As a result of this error, comprehensive income would be:
What is the effect on net income?
Branch Corp.'s total assets at the end of last year were $310,000 and its net income after taxes was $22,750. What was its return on total assets? Select the correct answer. a. 8.34% b. 7.34% c. 6.84% d. 7.84% e. 6.34%
Suppose a company has the following financials (in £millions) and no other non-operating income or expense: Net financial expense after tax = 8 Net interest expense = 12.6 Reported tax (on standard income statement) = 1220.4 Operating profit = 4,741 What is the company's net operating profit after tax (NOPAT)? (in £millions) Select one: a. 1,635 b. 3,516 c. None of the others d. 5,163
12. Arreaga Corp. has a tax rate of 40 percent and income before non-operating items of €262,000. It also has the following items (gross amounts). € 37,000 101,000 Unusual loss Discontinued operations loss Gain on disposal of equipment Change in accounting principle increasing prior year's income 8,000 53,000 What is the amount of income tax expense Arreaga would report on its income statement? а. €104,800 b. €93,200 c. €111,200 d. €74,000
Hedepeth fne net income for the most recent year was S15,185, The tax rate was 34 percent The mm paid $3,806 in total interest expense and deducted $2,485 in depreciation expense. a) What is the company's Earnings Before Taxes (EBT) b) What is the company's Earnings Before Interest and Taxes (EBIT) c) What is the company's Earnings Before Interest, Taxes, and Depreciation (EBITD) d) What was the cash coverage ratio for the year and how do you interpret your answer?
A company failed to record unrealized gains of $38 million on its debt investments classified as trading securities. Its tax rate is 25%. As a result of this error, total shareholders' equity would be:
Thompson Corporation has a discontinued operation gain of $45,000 and a 28% tax rate. What is the effect on net income? a. Increase of $32,400 b. Increase of $45,000 c. Increase of $12,600 d. No effect
Bramble Inc. has an investment in available-for-sale securities of $ 68000. This investment experienced an unrealized loss of $ 5800 during the current year. Assuming a 30% tax rate, the effect of this loss on comprehensive income will be a.no effect. b. $ 20400 decrease. c. $ 68000 increase. d. $ 4060 decrease.

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning