Question 2 [27 Marks] Presented below are 11 comprehensive income items from Neutrina Communications Network for the year ended December 31, 2023. R Sales revenue 2 500 000 Cost of sales 1 200 000 Interest revenue 14 000 Loss from abandonment of plant assets 42 000 Gain from extinguishing of debt 26 000 Selling expenses 288 000 Administrative expenses 191 000 Effect of change in estimated useful lives of fixed assets (included in administrative expenses) 34 000 Loss from flooding 29 000 Required: Prepare a statement of comprehensive income for Neutrina Communications Network using the information above. Assume a tax rate of 30%. Show all your workings. (27 marks)

Question 2 [27 Marks] Presented below are 11 comprehensive income items from Neutrina Communications Network for the year ended December 31, 2023. R Sales revenue 2 500 000 Cost of sales 1 200 000 Interest revenue 14 000 Loss from abandonment of plant assets 42 000 Gain from extinguishing of debt 26 000 Selling expenses 288 000 Administrative expenses 191 000 Effect of change in estimated useful lives of fixed assets (included in administrative expenses) 34 000 Loss from flooding 29 000 Required: Prepare a statement of comprehensive income for Neutrina Communications Network using the information above. Assume a tax rate of 30%. Show all your workings. (27 marks)

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....

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Required information Skip to question [The following information applies to the questions displayed below.]The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Year-End Balance Sheets 2021 2020 Plant assets Equipment $ 200,000 $ 290,000 Accumulated depreciation—Equipment (108,000) (218,000) Equipment, net $ 92,000 $ 72,000 Buildings $ 400,000 $ 420,000 Accumulated depreciation—Buildings (112,000) (297,000) Buildings, net $ 288,000 $ 123,000 During 2021, equipment with a book value of $44,000 and an original cost of $230,000 was sold at a loss of $3,800. 1. How much cash did Anders receive from the sale of equipment?2. How much depreciation expense was recorded on equipment during 2021?3. What was the cost of new equipment purchased by Anders during 2021?
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