During $20$X$1,$ Blue Corporation sold products for $$2,900,000$ with the sales returns and allowances of $$50,000.$ The company incurred selling expenses for $$120,000,$ administrative expenses for $$330,000,$ and interest expenses for $$64,000.$ During the year, the company purchased $20,000$ common shares of Francis Corporation at $$11$ per share and recorded the FV$-$NI investments, and also purchased $15,000$ shares of Davis Corporation at $$10$ per share and recorded the FV$-$OCI investments. On December $31,20$X$1,$ the share prices of Francis Corporation and Davis Corporation were $$13$ per share and $$7$ per share, respectively. The beginning$-$of$-$year balance of inventory was $$720,000$ and the end$-$of$-$year balance of inventory was $$850,000.$ During the year, the company purchased inventory for $$1,800,000.$ On September $1,20$X$1,$ the company discontinued operation of a division that had an income of $$100,000$ for its operation in $20$X$1.$ The discontinued division had the carrying value of net assets for $$250,000.$ The company received the proceeds of $$170,000$ from the disposal of the division. The income tax rate was $30\%.$

Required:

Prepare a multiple$-$step statement of comprehensive income for the year ended December $31,20$X$1,$ showing expenses by function.

Answer rating: 100% (QA)

Blue Corporation MultipleStep Statement of Comprehensive Income For the Year Ended December 31 20X1 ... View the full answer