The Massoud Consulting Group reported net income of $1,354,000 for its fiscal year ended December 31, 2011.

The Massoud Consulting Group reported net income of $1,354,000 for its fiscal year ended December 31, 2011. 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 combined statement of income and comprehensive income for 2011, beginning with net income.

Expert Solution

THE MASSOUD CONSULTING GROUP

Statement of Income and Comprehensive Income (in part)

For the Year Ended December 31, 2011

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

Comprehensive income: $1,466,000

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