Unrealized gains on available-for-sale securities

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Reference no: EM13863959

Melanie Mielke Construction Corporation is considering the appropriate accounting for two unrelated events during the year. The first event related to the effects of a labor strike that resulted in a work stoppage on a major construction project. $2,000,000 of building material that was left exposed to weather conditions during the strike was lost. The second event was a $3,000,000 unrealized gains on available-for-sale securities that continue to be held as an investment.

Melanie Mielke's annual sales were $9,000,000, at a gross margin of 15%. Selling expenses totaled $300,000, and administrative expenses totaled $800,000. Mielke is subject to a 30% income tax rate.

Prepare the 20XX income statement for Melanie Mielke Construction Corporation.

Reference no: EM13863959

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