Prepare a correct statement of comprehensive income

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Question 1 - On June 30, Bramble Corporation discontinued its operations in Mexico. During the year, the operating income was $392,000 before taxes. On September 1, Bramble disposed of the Mexico facility at a pretax loss of $792,000. The applicable tax rate is 25%. Show the discontinued operations section of Bramble's income statement.

Question 2 - An inexperienced accountant for Waterway Corporation showed the following in the income statement: net income $248,250 and unrealized gain on available-for-sale securities (before taxes) $87,200. The unrealized gain on available-for-sale securities is subject to a 25% tax rate. Prepare a correct statement of comprehensive income.

Reference no: EM133069405

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