
(1)
Income statement:
Income statement is one form of financial statement which reports revenues and expenses from business operations and the result of those operations are reported as net income or net loss for a particular time period.
Statement of comprehensive income:
It is a statement prepared to determine the total revenue, expenses, gains and losses in the reported year that includes some unusual and extraordinary transactions that may not always affect the changes in owner’s equity.
To prepare: The single, continuous multi-step statement of comprehensive income including EPS disclosure of Corporation SM for the year ended December 31, 2016.
(1)

Answer to Problem 4.7P
Corporation SM | ||
Statement of Comprehensive Income | ||
For the year ended December 31, 2016 | ||
Particulars |
Amount (in '000s) |
Amount (in '000s) |
Sales revenue | $15,300 | |
Cost of goods sold | -$6,200 | |
Gross profit | $9,100 | |
Operating expenses: | ||
Selling | $1,300 | |
General and administrative | $800 | |
Restructuring costs | $1,200 | |
Total operating expenses | -$3,300 | |
Operating income | $5,800 | |
Other income (expense): | ||
Loss on sales of investments | -$220 | |
Interest expense | -$180 | |
Interest revenue | $85 | |
Other income (expense) | -$315 | |
Income from continuing operations before income tax | $5,485 | |
Income tax expense (1) | -$2,194 | |
Income from continuing operations | $3,291 | |
Discontinued operations: | ||
Income from operations of discontinued component (including gain on disposal of $1,400) (2) |
$840 | |
Income tax expense (3) | -$336 | |
Income on discontinued operations | $504 | |
Net income | $3,795 | |
Other comprehensive income (loss): | ||
Unrealized gains from investments, net of tax (4) | $192 | |
Loss from foreign currency translation, net of tax (5) | -$144 | |
Total other comprehensive income | $48 | |
Comprehensive income | $3,843 | |
Earnings per share: | ||
Income from continuing operations (6) | $2.74 | |
Discontinued operations (8) | -$0.42 | |
Net income | $3.16 |
Table (1)
Explanation of Solution
Working Notes:
Determine the amount of income tax expense.
Determine the amount of income from operations of discontinued component.
Determine the amount of income tax expense of income from operations of discontinued component.
Determine the amount of net of tax on unrealized gains from investments.
Determine the amount of net of tax on loss from foreign currency translation.
Determine the amount of earning per share of income from continued operations.
Determine the number of common stock outstanding.
Determine the amount of earning per share of income from discontinued operations.
(2)
To prepare: The statement of comprehensive income of Corporation SM for the year ended December 31, 2016.
(2)

Answer to Problem 4.7P
Corporation SM | ||
Statement of Comprehensive Income | ||
For the year ended December 31, 2016 | ||
Particulars | Amount (in '000s) | Amount (in '000s) |
Net income | $3,795 | |
Other comprehensive income (loss): | ||
Unrealized gains from investments, net of tax (9) | $192 | |
Loss from foreign currency translation, net of tax (10) | -$144 | |
Total other comprehensive income | $48 | |
Comprehensive income | $3,843 |
Table (2)
Explanation of Solution
Working Notes:
Determine the amount of net of tax on unrealized gains from investments.
Determine the amount of net of tax on loss from foreign currency translation.
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Chapter 4 Solutions
INTERMEDIATE ACCOUNTING
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