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In-lab assignment _3 with solution

In-lab assignment _3 with solution - (120,000 Unrealized...

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IRMO Company Combined Statement of Income and Comprehensive Income For the Year Ended December 31, 2011 Sales revenue $15,000,000 Cost of goods sold 9,000,000 Gross profit 6,000,000 Operating expenses: General and administrative 1,000,000 Selling 500,000 Restructuring costs 300,000 Loss from write-down on obsolete inventory 400,000 Total operating expenses 2,200,000 Operating income 3,800,000 Other income (expense): Interest expense (700,000) Income before income taxes and extraordinary item 3,100,000 Income tax expense (1,240,000) Income before extraordinary item 1,860,000 Extraordinary item: Loss on factory expropriation (net of $400,000 tax benefit) (600,000) Net income 1,260,000 Other comprehensive income (loss): Foreign currency translation adjustment loss (net of tax)
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Unformatted text preview: (120,000) Unrealized gains on securities (net of tax) 108,000 Comprehensive income (loss) $1,248,000 IRMO COMPANY December 31, 2011 Account Balances Sales $15,000,000 Cost of goods sold $9,000,000 General and administrative expenses $1,000,000 Selling expenses $500,000 Interest expense $700,000 Additional information: Restructuring costs due to plant closings $300,000 Received for plant expropriated by foreign government $1,000,000 Amount received as a percentage of book value 50% Inventory written off as obsolete $400,000 Understatement of 2010 depreciation expense $50,000 Foreign currency translation adjustment loss $200,000 Unrealized gain on investment securities $180,000 Effective tax rate 40%...
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