Wagner Inc. has service revenue of $1,200,000, operating expenses of $720,000, and an unrealized holding loss of $60,000 on debt security investments for the year ended December 31. Its income tax rate is 25%. Required a. Prepare a single continuous statement of comprehensive income. Ignore earnings per share disclosures. • Do not use negative signs with any of your answers. Wagner Inc. Statement of Comprehensive Income For the Year Ended December 31 Service revenue Operating expenses Income before income tax Income tax expense Net income Unrealized holding loss on security investments, net of tax Wagner Inc. Income Statement For the Year Ended December 31 Service revenue Operating expenses Income before income tax Net income Wagner Inc. Statement of Comprehensive Income For the Year Ended December 31 + + Unrealized holding loss on security investments, net of tax Income before income tax Comprehensive income + + + b. Prepare two separate statements of income and comprehensive income. Ignore earnings per share disclosures. • Do not use negative signs with any of your answers. + + + + $ + $ 1,200,000 720,000 480,000 $ $ 0 0 45,000 0 $ 1,200,000 720,000 0 0 0 0 0 0

Wagner Inc. has service revenue of $1,200,000, operating expenses of $720,000, and an unrealized holding loss of $60,000 on debt security investments for the year ended December 31. Its income tax rate is 25%. Required a. Prepare a single continuous statement of comprehensive income. Ignore earnings per share disclosures. • Do not use negative signs with any of your answers. Wagner Inc. Statement of Comprehensive Income For the Year Ended December 31 Service revenue Operating expenses Income before income tax Income tax expense Net income Unrealized holding loss on security investments, net of tax Wagner Inc. Income Statement For the Year Ended December 31 Service revenue Operating expenses Income before income tax Net income Wagner Inc. Statement of Comprehensive Income For the Year Ended December 31 + + Unrealized holding loss on security investments, net of tax Income before income tax Comprehensive income + + + b. Prepare two separate statements of income and comprehensive income. Ignore earnings per share disclosures. • Do not use negative signs with any of your answers. + + + + $ + $ 1,200,000 720,000 480,000 $ $ 0 0 45,000 0 $ 1,200,000 720,000 0 0 0 0 0 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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