Question:
O’Reilly Beverage Company reported net income of $650,000 for 2013. In addition, the company
deferred a $60,000 pretax loss on derivatives and had pretax net unrealized holding gains on investment
securities of $40,000. Prepare a separate statement of comprehensive income for 2013. The company’s
income tax rate is 40%.
Answer:
O’REILLY BEVERAGE COMPANY
Statement of Comprehensive Income
For the Year Ended December 31, 2013
Net income .............................................................................. $650,000
Other comprehensive income (loss):
Deferred loss on derivatives, net of tax ................................ $(36,000)
Unrealized gains on investment securities,
net of tax ............................................................................ 24,000
Total other comprehensive loss ............................................... (12,000)
Comprehensive income ........................................................... $638,000
O’Reilly Beverage Company reported net income of $650,000 for 2013. In addition, the company
deferred a $60,000 pretax loss on derivatives and had pretax net unrealized holding gains on investment
securities of $40,000. Prepare a separate statement of comprehensive income for 2013. The company’s
income tax rate is 40%.
Answer:
O’REILLY BEVERAGE COMPANY
Statement of Comprehensive Income
For the Year Ended December 31, 2013
Net income .............................................................................. $650,000
Other comprehensive income (loss):
Deferred loss on derivatives, net of tax ................................ $(36,000)
Unrealized gains on investment securities,
net of tax ............................................................................ 24,000
Total other comprehensive loss ............................................... (12,000)
Comprehensive income ........................................................... $638,000
