Question: An inexperienced accountant for Silva Corporation showed the following in the income statement: income before income taxes of $450,000 and unrealized gain on available-for-sale securities (before taxes) of $70,000. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 25% tax rate. Prepare a correct statement of comprehensive income.
Question: An inexperienced accountant for Silva Corporation showed the following in the income statement: income before income taxes of $450,000 and unrealized gain on available-for-sale securities (before taxes) of $70,000. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 25% tax rate. Prepare a correct statement of comprehensive income.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter7: Financial Activities
Section: Chapter Questions
Problem 3AIC
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Transcribed Image Text:Question:
An inexperienced accountant for Silva Corporation showed the
following in the income statement: income before income taxes of
$450,000 and unrealized gain on available-for-sale securities
(before taxes) of $70,000. The unrealized gain on available-for-sale
securities and income before income taxes are both subject to a
25% tax rate. Prepare a correct statement of comprehensive
income.
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