Question

In: Accounting

If a business has $100,000 in net income, $20,000 in advertising expenses, $10,000 in accounting fees,...

If a business has $100,000 in net income, $20,000 in advertising expenses, $10,000 in accounting fees, and a $40,000 positive effect in foreign currency adjustments, then what is their comprehensive income?

Solutions

Expert Solution

Income Statement comprises of

Profit / Loss for the period + Other comprehensive Income = Total comprehensive income

Profit / Loss for the period means Total of income less all expenses , excluding the all other comprehensive income .

Other comprehensive Income Means all income  and expenses of company which are not recognized in profit and loss statement , these are all expenses and incomes which refers to current year or pervious year but which are not yet realized.

In given case $20000 which are advertising expenses and $10000 accounting fees are already been recognized in income statement

so Foreign currency adjustment are shown in income statement as other comprehensive income i.e 40000

Profit /Loss + Other comprehensive income = Total comprehensive income
$100000 + $ 40000 =

$ 140000

Net income + Foreign currency adjustment =

$ 140000

If you have any doubt please comment in comment section we are there to help you

Thanks

Kindly upvote


Related Solutions

1. If net revenues are 100,000 and advertising expenses are 20,000 what percentage would you get...
1. If net revenues are 100,000 and advertising expenses are 20,000 what percentage would you get for advertising if you were doing a vertical analysis? 2. If prior year cash was 100,000 and current year cash is 150,000 what would be the horizontal analysis calculation? 3. In the world of merchandising what is the equation to calculate cost of goods sold? 4. What makes up net purchases? 5. In manufacturing what are the differences in calculating cost of goods sold...
3a. Resilient Company had sales of $100,000, operating income of $15,000 and net income of $10,000...
3a. Resilient Company had sales of $100,000, operating income of $15,000 and net income of $10,000 in 2017. Total assets amounted to 180,000 at the beginning of 2017 and 220,000 at the end of the year. Total stockholders’ equity amounted to $45,000 at the beginning of 2017 and $55,000 at the end of 2017. Using the DuPont formula, calculate the return on investment for Resilient in 2017. Calculate return of stockholders’ equity for 2017. 3b. Volume Company sold for $950,000...
Betagamma Inc. booked $120,000 in net income and interest expenses of $20,000 over the past year,...
Betagamma Inc. booked $120,000 in net income and interest expenses of $20,000 over the past year, facing a tax rate of 14%. If Betagamma was instead financed entirely with equity, what would its net income be? Please, provide an explanation.
Tanesha, aged 66, is single. She has the following income and expenses in 2017: Net income...
Tanesha, aged 66, is single. She has the following income and expenses in 2017: Net income from sole proprietorship business $43,000 Interest income 1,200 Alimony received 10,000 Loss on sale of investments 1,100 Medical insurance premiums paid (for self-employed taxpayer) 3,000 Property tax on residence 850 Charitable contributions 1,350 Medical expenses 2,000 One-half of the self-employment tax paid 2,600 State income tax 1,900 Federal income tax $6,700 The personal exemption for 2017 is $4,050. a. Classify the following expenses as...
____   1.   Al single, age 70, and has gross income of $100,000. His deductible expenses are...
____   1.   Al single, age 70, and has gross income of $100,000. His deductible expenses are as follows: Alimony $9,000 Charitable contributions 5,000 Contribution to a traditional IRA 4,000 Medical expenses 11,850 State income taxes 4,000 Expenses paid on rental property 8,000 Unreimbursed moving expenses to a new job in a new city (400 miles away) 1,000 Interest on home mortgage and property taxes on personal residence 8,000 State income tax 9,000 What is Al’s medical deduction? a. $2,300. b....
What is the correct presentation of the income statement? Revenues - expenses = Net income -...
What is the correct presentation of the income statement? Revenues - expenses = Net income - losses + gains Revenues - expenses + gains - losses = Net Income Revenues + gains - losses - expenses = Net Income Revenues - losses - expenses + gains = Net Income Which statement about negative goodwill is true? Negative goodwill should be recorded as a direct credit to retained earnings. Negative goodwill is not recorded. Negative goodwill should be allocated proportionately to...
XYZ corporation had a $20,000 net loss in 2018. Kitty has $2000 income in 2016 and...
XYZ corporation had a $20,000 net loss in 2018. Kitty has $2000 income in 2016 and $8000 income in 2017. Kitty is c corporation tax client. How do you handle this case and what you can tell her to write off on her tax?
A firm has $100,000 in Net Income. Its invested capital is $500. The firm’s interest rate...
A firm has $100,000 in Net Income. Its invested capital is $500. The firm’s interest rate is 4% and tax rate is 25%. What is its ROIC?
There are 100 shares outstanding of a company and Net Income is $10,000 and is paid...
There are 100 shares outstanding of a company and Net Income is $10,000 and is paid out to shareholder as dividend without retaining earning so the dividend per share is $100. Assuming a 10 percent required return, the value of a share of stock today.
Fred and Wilma, married taxpayers, earn $100,000 in taxable income and $20,000 in interest from an...
Fred and Wilma, married taxpayers, earn $100,000 in taxable income and $20,000 in interest from an investment in city of Bedrock bonds. Using the U.S. tax rate schedule for married filing jointly for year 2019, how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate? If Fred and Wilma earn an additional $40,000 of taxable income, what is their marginal tax rate on this...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT