The Massoud Consulting Group reported net income of $1,354,000 for its fiscal year ended December 31, 2018. In addition, during the year the company experienced a positive foreign currency translation adjustment of $240,000 and had unrealized losses on investment securities of $80,000. The company’s effective tax rate on all items affecting comprehensive income is 30%. Each component of other comprehensive income is displayed net of tax.Prepare a separate statement of comprehensive income for 2018.

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Answer:

                             Massoud Consulting Group

                      Statement of Comprehensive Income

                      for the year ended December 31, 2018.

                                                                                 $                $

Net Income                                                                          1,354,000

Other Comprehensive Income:

Foreign Currency Gain / Loss                           240,000

Unrealized Losses on Investment Securities  (80,000)

                                                                                              160,000

Total Comprehensive Income                                           1,514,000