【正文】 o manufacturer’s crops are destroyed by a hail storm. Severe damage from hail storms in the locality where the manufacturer grows tobacco is rare. (b) A citrus grower39。 or 3. As part of the statement of stockholders’ equity Comprehensive Ine LO 8 Explain how to report other prehensive ine. Chapter 445 TwoStatement Format for Comprehensive Ine Comprehensive Ine LO 8 Explain how to report other prehensive ine. Illustration 419 Chapter 446 V. G i l l I n c.C o m bi n e d S t at e m e n t o f C o m p r e h e n si ve I n co m eF o r t h e Y e ar E n d e d D e ce m be r 3 1 , 2 0 0 7S ale s r e ve n u e 8 0 0 , 0 0 0$ C o st o f g o o d s s o l d 6 0 0 , 0 0 0 G r o ss p r o f i t 2 0 0 , 0 0 0 O p e r at i n g e x p e n se s 9 0 , 0 0 0 N e t i n co m e 1 1 0 , 0 0 0 U n r e ali ze d h o l d i n g g ai n , n e t o f t ax 3 0 , 0 0 0 C o m p r e h e n si ve i n co m e 1 4 0 , 0 0 0$ Combined Ine Statement Comprehensive Ine LO 8 Explain how to report other prehensive ine. Chapter 447 Comprehensive Ine LO 8 Explain how to report other prehensive ine. Statement of Stockholders’ Equity (most mon) Illustration 420 Chapter 448 Comprehensive Ine LO 8 Explain how to report other prehensive ine. Balance Sheet Presentation Illustration 421 Regardless of the display format used, the accumulated other prehensive ine of $90,000 is reported in the stockholders’ equity section of the balance sheet. Chapter 449 Review The FASB decided that the ponents of other prehensive ine must be displayed a. in a second separate ine statement. b. in a bined ine statement of prehensive ine. c. as a part of the statement of stockholders39。 equity are referred to as a. prehensive ine. b. other prehensive ine. c. prior period ine. d. unusual gains and losses. Comprehensive Ine LO 8 Explain how to report other prehensive ine. Chapter 444 Three approaches to reporting Comprehensive Ine (SFAS No. 130, June 1997): 1. A second separate ine statement。s Florida crop is damaged by frost. (c) A pany sells a block of mon stock of a publicly traded pany. The block of shares, which represents less than 10% of the publiclyheld pany, is the only security investment the pany has ever owned. YES Reporting Extraordinary Items NO YES LO 4 Explain how to report irregular items. Chapter 423 Are these items Extraordinary? (d) A large diversified pany sells a block of shares from its portfolio of securities which it has acquired for investment purposes. This is the first sale from its portfolio of securities. (e) An earthquake destroys one of the oil refineries owned by a large multinational oil pany. Earthquakes are rare in this geographical location. (f) A pany experiences a material loss in the repurchase of a large bond issue that has been outstanding for 3 years. The pany regularly repurchases bonds of this nature. NO Reporting Extraordinary Items YES NO LO 4 Explain how to report irregular items. Chapter 424 Exercise: McCarthy Corporation had after tax ine from continuing operations of $55,000,000 in 2022. In addition, it suffered an unusual and infrequent pretax loss of $770,000 from a volcano eruption. The corporation’s tax rate is 30%. Prepare a partial ine statement for McCarthy Corporation beginning with ine from continuing operations. Ine from continuing operations $55,000,000 Extraordinary loss, of $231,000 tax 539,000 Net ine $54,461,000 Reporting Extraordinary Items ($770,000 x 30% = $231,000 tax) LO 4 Explain how to report irregular items. Chapter 425 O t h e r r e v e nue ( e x p e ns e ) :I nt e re s t re v e nue 1 7, 00 0 I nt e re s t e x p e ns e ( 21 , 00 0) T o t a l o t h e r ( 4, 00 0) I nc o m e b e f o re t a x e s 79 , 00 0 I nc o m e t a x e x p e ns e 24 , 00 0 I nc o m e f ro m c o nt inui ng o p e ra t io ns 55 , 00 0 E x t ra o rd ina ry l o s s , ne t o f t a x 539 N e t i nc o m e 54 , 46 1$ I n c o me S t a t em ent ( i n t h o us a n d s )Sa les 2 8 5 , 0 0 0$ Co s t o f g o o d s s o l d 1 4 9 , 0 0 0 Extraordinary Items are reported after “Ine from continuing operations.” Previously labeled as “Net Ine”. Reporting Extraordinary Items Moved to LO 4 Explain how to report irregular items. Chapter 426 Reporting Irregular Items I nt e re s t e x p e ns e ( 21 , 00 0) T o t a l o t h e r ( 4, 00 0) I nc o m e b e f o re t a x e s 79 , 00 0 I nc o m e t a x e x p e ns e 2