Question

The Massoud Consulting Group reported net income of $1,354,000 for its fiscal year ended December 31, 2018. In addition, during the year the company experienced a positive foreign currency translation adjustment 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.Prepare a separate statement of comprehensive income for 2018.

Answer 1

Massoud Consulting Group

Statement of Comprehensive Income

for the year ended December 31, 2018.

$ $

Net Income 1,354,000

Other Comprehensive Income:

Foreign Currency Gain / Loss 240,000

Unrealized Losses on Investment Securities (80,000)

160,000

Total Comprehensive Income 1,514,000