Comprehensive Income
The following information relates to Loveland Company:
|
Sales |
600,000 |
|
Cost of goods sold |
300,000 |
|
Other operating expenses |
100,000 |
|
Interest expense |
10,000 |
|
Income tax expense |
70,000 |
In addition, the following events occurred during the year:
1. Loveland has an investment portfolio for long-term investment purposes. That portfolio decreased in value by $70,000 during the year.
2. Loveland owns a substantial amount of land. During the year, the land increased in value by $160,000.
3. Loveland has several foreign subsidiaries. The currencies in the countries where those subsidiaries are located declined in value (relative to the U.S. dollar) during the year. Accordingly, the computed value of the equity of those subsidiaries, in U.S. dollars, decreased by $60,000.
Required:
1. Compute Loveland’s comprehensive income for the year.