Ivanhoe Manufacturing Company has income from continuing operations of $585,000 (after tax) for the year ended December 31, 2025. It also has the following items (before considering income taxes): (1) An unrealized loss of $113,000 available-for-sale debt securities. (2) A gain of $56,500 on the discontinuance of a major component of the business. (3) A cumulative effect of a change in accounting principle that resulted in an increase in prior years' depreciation of $47,000.
Ivanhoe Manufacturing Company has income from continuing operations of $585,000 (after tax) for the year ended December 31, 2025. It also has the following items (before considering income taxes): (1) An unrealized loss of $113,000 available-for-sale debt securities. (2) A gain of $56,500 on the discontinuance of a major component of the business. (3) A cumulative effect of a change in accounting principle that resulted in an increase in prior years' depreciation of $47,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...
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![Ivanhoe Manufacturing Company has income from continuing operations of $585,000 (after tax) for the year ended December 31,
2025. It also has the following items (before considering income taxes):
(1)
(2)
(3)
An unrealized loss of $113,000 available-for-sale debt securities.
A gain of $56,500 on the discontinuance of a major component of the business.
A cumulative effect of a change in accounting principle that resulted in an increase in prior years' depreciation of $47,000.
Assume all items are subject to income taxes at a 30% tax rate.
Prepare a combined statement of income and comprehensive income beginning with income from continuing operations.
IVANHOE MANUFACTURING COMPANY
Combined Statement of Income and Comprehensive Income (partial)
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a93d5a7-c482-40f5-9953-1b1330fe51c2%2F6e59bc60-6581-451b-b0cf-90eab961c530%2Fzjy24hp_processed.png&w=3840&q=75)
Transcribed Image Text:Ivanhoe Manufacturing Company has income from continuing operations of $585,000 (after tax) for the year ended December 31,
2025. It also has the following items (before considering income taxes):
(1)
(2)
(3)
An unrealized loss of $113,000 available-for-sale debt securities.
A gain of $56,500 on the discontinuance of a major component of the business.
A cumulative effect of a change in accounting principle that resulted in an increase in prior years' depreciation of $47,000.
Assume all items are subject to income taxes at a 30% tax rate.
Prepare a combined statement of income and comprehensive income beginning with income from continuing operations.
IVANHOE MANUFACTURING COMPANY
Combined Statement of Income and Comprehensive Income (partial)
$
$
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