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.