Reference no: EM131754349

Prepare income statement and comprehensive income statement.

(LO 3) AP

The ledger of Coquitlam Corporation at December 31, 2017, contains the following summary data:

Cash dividends-common	$  125,000	Other comprehensive income-gain on equity investments (before income tax)	$ 47,000
Cash dividends-preferred	55,000
Cost of goods sold	888,000	Other expenses	18,000
Sales	1,750,000	Retained earnings, January 1, 2017	642,000
Operating expenses	451,000

Your analysis reveals the following additional information:

• 1.The company has a 25% income tax rate.
• 2.The ceramics division was discontinued on July 31. The loss from operations for the division up to that day was $150,000 before income tax. The division was sold at a pre-tax gain of $70,000 before income tax.
• 3.There were 200,000 common and 100,000 noncumulative preferred shares issued on December 31, 2016, with no changes during the year.

Instructions

(a) Prepare a multiple-step income statement for the year.

(b) Prepare a statement of comprehensive income as a separate statement.