In 2015, the MoosePants Corporation reported income from continuing operations before taxes of $865,500 and income from discontinued operations of $213,000. MoosePants also reported $82,000 of unrealized gains from fair value accounting adjustments recorded as other comprehensive income. The company is subject to a 34% tax rate and reports no permanent differences.

Prepare a partial income statement including comprehensive income.

What will be an ideal response?

Answer:
Income from continuing operations before taxes
$865,500
Income tax expense
294,270
Income from continuing operations
571,230
Discontinued operations – net of tax $72,420
140,580
Net income
711,810
Other comprehensive income – net of tax $27,880
54,120
Comprehensive income
$765,930