During the year ended December 31, 2016, Bacarella International Corporation earned $3,600,000 in net income after taxes. The company reported $120,000 of net unrealized gains on available-for-sale securities, net of taxes, and $160,000 in foreign-currency translation gains from consolidation of its Mexican subsidiary company, net of taxes.
Requirements
1. Prepare the Statement of Comprehensive Income for Bacarella International Corporation for the year ended December 31, 2016. Use Exhibit 11-2 as an example.
2. Explain where* the following items will appear in Bacarella International Corporation's Statement of Stockholder's Equity for the year ended December 31, 2016:
a. Net income
b. Net unrealized gains from available-for-sale securities, net of taxes
c. Foreign-currency translation gains from consolidation of Mexican subsidiary, net of taxes