Lyon Corp reported income from continuing operations before taxes of $774,000 and income from discontinued operations of $198,000. Lyon also reported $77,000 of unrealized gains from fair value accounting adjustments recorded as other comprehensive income. The company is subject to a 35% 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
$774,000
Income tax expense
270,900
Income from continuing operations
503,100
Discontinued operations – net of tax $69,300
128,700
Net income
$631,800
Other comprehensive income – net of tax $26,950
50,050
Comprehensive income
$681,850