Trayer plc has income from continuing operations of 290,000 for the year ended December 31, 2025. It
Question:
Trayer plc has income from continuing operations of £290,000 for the year ended December 31, 2025. 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 2024 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.
Step by Step Answer:
Financial Accounting With International Financial Reporting Standards
ISBN: 9781119787051
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso