Unrealized holding gain net of tax 18000 Comprehensive income 148000 5 b

Unrealized holding gain net of tax 18000

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Unrealized holding gain, net of tax...........................................         18,000Comprehensive income.............................................................$   148,0005
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(b)ROXANNE CARTER CORPORATIONIncome Statement and Comprehensive Income StatementFor the Year Ended December 31, 2014Sales............................................................................................$1,200,000Cost of goods sold.....................................................................       750,000Gross profit.................................................................................450,000Selling and administrative expenses.......................................       320,000Net income..................................................................................$   130,000Comprehensive IncomeNet income..................................................................................$   130,000Unrealized holding gain.............................................................         18,000Comprehensive income.............................................................$   148,000EXERCISE 4-16 C. REITHER CO.Statement of Stockholders’ EquityFor the Year Ended December 31, 2014TotalRetainedEarningsAccumulatedOtherComprehensiveIncomeCommon StockBeginning balance$520,000$  90,000$80,000$350,000Comprehensive income    Net income*120,000120,000    Other comprehensive income        Unrealized holding loss(60,000)(60,000)Comprehensive incomeDividends    (10,000)      (10,000)                          6
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Ending balance$570,000$200,000$20,000$350,000*($700,000 – $500,000 – $80,000).PROBLEM 4-1DICKINSON COMPANYIncome StatementFor the Year Ended December 31, 2014Sales revenue....................................................................$25,000,000Cost of goods sold...........................................................    16,000,000Gross profit.......................................................................9,000,000Selling and administrative expenses..............................       4,700,000Income from operations...................................................4,300,000Other revenues and gainsInterest revenue......................................................$  70,000Gain on the sale of investments...........................    110,000180,000Other expenses and lossesWrite-off of goodwill...............................................         820,000Income from continuing operations before    income tax.......................................................................3,660,000Income tax.........................................................................       1,244,000Income from continuing operations................................2,416,000Discontinued operationsLoss on operations, net of applicable tax............90,000Loss on disposal, net of applicable tax...............    440,000        (530,000)Income before extraordinary item...................................1,886,000Extraordinary item—loss from flood     damage, net of applicable tax......................................       390,000Net income.........................................................................$  1,496,000Earnings per share:7
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Income from continuing operations......................$ 4.67aDiscontinued operationsLoss on operations, net of tax......................$(0.18)Loss on disposal, net of tax..........................    (0.88)    (1.06)Income before extraordinary item..........................3.61bExtraordinary loss, net of tax.................................    (0.78)Net income...............................................................$ 2.83c8
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PROBLEM 4-1 (Continued)DICKINSON COMPANYRetained Earnings StatementFor the Year Ended December 31, 2014
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