Trayer plc has income from continuing operations of 290,000 for the year ended December 31, 2020. It

Question:

Trayer plc has income from continuing operations of £290,000 for the year ended December 31, 2020. It also has the following items (before considering income taxes).

1. An unrealized loss of £80,000 on non-trading securities.
2. A gain of £30,000 on the discontinuance of a division (comprised of a £10,000 loss from operations and a £40,000 gain on disposal).
3. A correction of an error in last year’s financial statements that resulted in a £20,000 understatement of 2019 income before income taxes.
Assume all items are subject to income taxes at a 20% tax rate.


Instructions
Prepare a statement of comprehensive income, beginning with income from continuing operations.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Accounting Principles

ISBN: 978-1119419617

IFRS global edition

Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt

Question Posted: