Summary Business Accounting

Question:

The Massoud Consulting Group reported net income of $1,354,000 for its fiscal year ended December 31,

2013. In addition, during the year the company experienced a foreign currency translation adjustment

gain of $240,000 and had unrealized losses on investment securities of $80,000. The company’s effective

tax rate on all items affecting comprehensive income is 30%. Each component of other comprehensive

income is displayed net of tax.

Required:

Prepare a separate statement of comprehensive income for 2013.



Answer:




THE MASSOUD CONSULTING GROUP

Statement of Comprehensive Income

For the Year Ended December 31, 2013



Net income .............................................................................. $1,354,000

Other comprehensive income (loss):

Foreign currency translation gain, net of tax ........................ $168,000

Unrealized losses on investment securities,

net of tax ............................................................................ (56,000

Total other comprehensive income .......................................... 112,000

Comprehensive income ........................................................... $1,466,000