Financial Statement Analysis

Trayer Corporation has income from continuing operations of $290,000 for the year ended December 31, 2020. It also has the following items (before considering income taxes).

1. An unrealized loss of $80,000 on available-for-sale securities.
2. A gain of $30,000 on the discontinuance of a division (Comprising a $10,000 loss from operations and a $40,000 gain on disposal).
3. A correction of an error in last year's financial statements that resulted in a $20,000 understatement of 2019 net income

Assume all items are subject to income taxes at a 20% tax rate.

Instructions

Prepare a statement of comprehensive income, beginning with income from continuing operations.

Solution