Reference no: EM132633907

Question - A Company's Statement of Profit or Loss for the first quarter ended March 31, 2020 is shown below:

Income

Sales 9,000,000

Dividend Income 200,000

Gain on Inventory Write-up 100,000

9,300,000

Costs and Expenses

Cost of Sales 5,000,000

Real Property Taxes 250,000

Impairment Loss 150,000

Other Operating Expenses 2,800,000

8,200,000

Profit 1,100,000

Additional information:

1. The company paid the 2020 real property tax of 1,000,000 on February 2, 2020. It deferred the cost and recognized it evenly throughout the interim periods.

2. The dividend income is recognized in anticipation of the year-end dividends not yet declared by the investee. However, based on experience, the investee has never failed to declare year-end dividends.

3. On March 31, 2020, an item of PPE with a carrying amount of 1,600,000 is determined to have a recoverable amount of 1,000,000. The company deferred the difference and amortized it over the interim periods.

4. On March 31, 2020, the company's inventory with a total cost of 900,000 has a net realizable value of 1,000,000. Although it believes that the market recovery is only temporary, it decided to recognize the entire inventory to write-up in the first quarter. It has not recognized any write-down of inventory in the past.

Required - Compute for the correct comprehensive income (loss) for the quarter ended March 31, 2020.