Duke Company's records show the following account balances at December 31, 2024: Sales revenue Cost of goods sold General and administrative expense Selling expense Interest expense $15,000,000 9,000,000 1,000,000 500,000 700,000 Income tax expense has not yet been determined. The following events also occurred during 2024. All transactions are material in amount. 1. $300,000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $400,000 was written off as obsolete. Material losses of this type are considered to be unusual. 3. It was discovered that depreciation expense for 2023 was understated by $50,000 due to a mathematical error. The amount is considered material. 4. The company experienced a negative foreign currency translation adjustment of $200,000 and had an unrealized gain on debt securities of $180,000. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2024. The company's effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income should be displayed net of tax. Ignore EPS disclosures. Use a multiple-step format similar to the one in the Concept Review Exercise at the end of Part A of this chapter (excluding discontinued operations shown there).
Duke Company's records show the following account balances at December 31, 2024: Sales revenue Cost of goods sold General and administrative expense Selling expense Interest expense $15,000,000 9,000,000 1,000,000 500,000 700,000 Income tax expense has not yet been determined. The following events also occurred during 2024. All transactions are material in amount. 1. $300,000 in restructuring costs were incurred in connection with plant closings. 2. Inventory costing $400,000 was written off as obsolete. Material losses of this type are considered to be unusual. 3. It was discovered that depreciation expense for 2023 was understated by $50,000 due to a mathematical error. The amount is considered material. 4. The company experienced a negative foreign currency translation adjustment of $200,000 and had an unrealized gain on debt securities of $180,000. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2024. The company's effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income should be displayed net of tax. Ignore EPS disclosures. Use a multiple-step format similar to the one in the Concept Review Exercise at the end of Part A of this chapter (excluding discontinued operations shown there).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Duke Company's records show the following account balances at December 31, 2024:
Sales revenue
Cost of goods sold
General and administrative
expense
Selling expense
Interest expense
$15,000,000
9,000,000
1,000,000
500,000
700,000
Income tax expense has not yet been determined. The following events also occurred during 2024.
All transactions are material in amount.
1. $300,000 in restructuring costs were incurred in connection with plant closings.
2. Inventory costing $400,000 was written off as obsolete. Material losses of this type are
considered to be unusual.
3. It was discovered that depreciation expense for 2023 was understated by $50,000 due to a
mathematical error. The amount is considered material.
4. The company experienced a negative foreign currency translation adjustment of $200,000 and
had an unrealized gain on debt securities of $180,000.
Required:
Prepare a single, continuous multiple-step statement of comprehensive income for 2024. The
company's effective tax rate on all items affecting comprehensive income is 25%. Each component
of other comprehensive income should be displayed net of tax. Ignore EPS disclosures. Use a
multiple-step format similar to the one in the Concept Review Exercise at the end of Part A of this
chapter (excluding discontinued operations shown there).
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