Comprehensive: Comparative Income Statements The accountant for the Tiger Company prepared comparative income statements for 2010 and 2011 as follows: The auditor of Tiger Company reviewed the accounting records and income statements and discovered the facts described in items 1 and 2 below. All amounts incurred during 2010 and 2011 are included in the preceding statements. 1. Included in the category “Other Items” (along with other smaller miscellaneous items) were the following: a. A casualty loss of $60,000 in 2010 that was considered to be both unusual and infrequent b. A $150,000 loss in 2011 from an unusually large write-down of inventory because of obsolescence c. A $250,000 gain in 2010 that was considered to be both unusual and infrequent 2. On July 1, 2011, Tiger has announced its intention to sell its backscratcher division. This division is considered a component of the company. Operating results for this division are included in the company’s overall operating results for 2010 and 2011, as shown previously, and are as follows: Required Prepare corrected comparative statements of income for 2011 and 2010 for the Tiger Company. Ignore earnings per share.
Comprehensive: Comparative Income Statements The accountant for the Tiger Company prepared comparative income statements for 2010 and 2011 as follows:
The auditor of Tiger Company reviewed the accounting records and income statements and discovered the facts described in items 1 and 2 below. All amounts incurred during 2010 and 2011 are included in the preceding statements.
1. Included in the category “Other Items” (along with other smaller miscellaneous items) were the following: a. A casualty loss of $60,000 in 2010 that was considered to be both unusual and infrequent b. A $150,000 loss in 2011 from an unusually large write-down of inventory because of obsolescence c. A $250,000 gain in 2010 that was considered to be both unusual and infrequent
2. On July 1, 2011, Tiger has announced its intention to sell its backscratcher division. This division is considered a component of the company. Operating results for this division are included in the company’s overall operating results for 2010 and 2011, as shown previously, and are as follows:
Required
Prepare corrected comparative statements of income for 2011 and 2010 for the Tiger Company. Ignore earnings per share.
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