QUESTION 4 14 MARKS You have been provided with the following financial statement Jackson Michaels Inc. for the year ended December 31, 2015.

REQUIREMENT

Prepare a statement of comprehensive income commencing with Income from Operations. Show details of all calculations, including details of which items you have included in Income from Operations.

Revenue $5,200,000 Cost of sales 2,450,000 Gross profit 2,750,000 Operating expenses Salaries and wages $500,000 Administrative expense 335,000 Depreciation expense 75,000 Selling expenses 120,000 Distribution expenses 220,000 Interest expense 80,000 Loss on asset disposal 48,000 Holding gain on investment (26,000) 1,352,000 Income before taxes 1,398,000 Income taxes 559,200 Net income 838,800 The following information has been provided to supplement the financial statements: 1. The Board of Directors has announced that the pivot division was to be sold. The Loss on disposal of assets is the estimated loss on the disposal of the pivot division assets. Further, the division had the following operating results which are included in the financial statements shown above.: Sales Cost of sales Salaries and wages Administrative costs $950,000 750,000 180,000 110,000 2. The holding gain was recognized on the re-measurement of an investment to fair value. The investment is FVTOCI