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Presented below is information related to Sunland Company at December 31, 2017, the end of its

Question:

Presented below is information related to Sunland Company at December 31, 2017, the end of its first year of operations.

Sales revenue$327,980
Cost of goods sold148,580
Selling and administrative expenses52,100
Gain on sale of plant assets30,840
Unrealized gain on available-for-sale investments9,370
Interest expense6,060
Loss on discontinued operations11,970
Dividends declared and paid5,190

Compute the following:

(a) Income from operations$_____
(b) Net income$_____
(c) Comprehensive income$_____
(d) Retained earnings balance at December 31, 2017$_____

Retained Earnings:

Retained earnings are the part of the net income after distribution of dividend and available for the growth of the company; they are added to the reserve surplus head in the financial statement.

Answer and Explanation:

ParticularsAmount
Sales revenue$327,980
Cost of goods sold$(148,580)
Gross profit$179,400
Selling and admin expenses$(52,100)
a.Income from Operations$127,300
aGain on sale of plant$30,840
Interest expenses$(6,060)
Loss from discontinued business$(11,970)
bNet income$140,110
Unrealized gain$9,370
cComprehensive income$149,480
Divdend declared$(5,190)
dRetained earnings$144,290

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