Question

Saved Help Week 3: Homework Submit Save & Exit Check my work 4 The 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. 5 points eBook Required: Prepare a separate statement of comprehensive income for 2021. (Amount to be deducted should be Indicated with a minus sign.) Hint Ask THE MASSOUD CONSULTING GROUP Print Statement of Comprehensive Income For the Year Ended December 31, 2021 References 1.392,000 $ Net Income Other comprehensive income, net of tax: Foreign currency translation adjustment Loss on debt securities Total other comprehensive income Comprehensive income (430.049 (70.000 1.392.000

Answer 1

Answer

• Requirement asked

Statement of Comprehensive Income
Net Income		$1,392,000
Other comprehensive income (loss):
Foreign currency translation gain, net of tax ($430000 x (100%-25%)	$322,500
Unrealized losses on investment securities net of tax ($70000 x (100%-25%)	($52,500)
Total other comprehensive income		$270,000
Comprehensive Income		$1,662,000