Question

he Massoud Consulting Group reported net income of $1,392,000 for its fiscal year ended December 31, 2021. In addition, during the year the company experienced a positive foreign currency translation adjustment of $430,000 and an unrealized loss on debt securities of $70,000. The company’s effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income is displayed net of tax.

Required:
Prepare a separate statement of comprehensive income for 2021. (Amount to be deducted should be indicated with a minus sign.)
  

Answer 1

Net income		$1,392,000
Other Comprehensive income (loss) :
... Foreign currency translation adjustment gain, net of tax ($430,000 * 75%)	$322,500
... Unrealized loss on debt securities, net of tax ($70,000 * 75%)	($52,500)
Total other comprehensive income		$270,000
Comprehensive income		$1,662,000