87) What is other comprehensive income and what typically does it include?
88) The statement of earnings for Bancroft Company for the year ended December 31, 2010 appears below.
Sales$162,000
Cost of goods sold 96,000
Gross profit66,000
Expenses* 36,000
Net income$ 30,000
*Includes $6,000 of interest expense and $3,200 of income tax expense.
Additional information:
1.Average number of common shares outstanding in 2010 was 15,000 shares.
2.The market price of Bancroft's shares was $36 per share at the end of 2010
3.Cash dividends of $6,000 were paid; $1,200 of which were paid to preferred shareholders.
Calculate the earnings per share for 2010.
89) Describe the process of income tax accrual. What is the goal of income tax accrual? When is income tax expense recorded? How is income tax expense calculated? Is this the same amount that will be paid to the government when the income tax return is filed? Discuss a common difference between pretax accounting income and taxable income.