Transcript ch04

Intermediate
Accounting
4-1
Prepared by
Coby Harmon
University of California, Santa Barbara
4
Income Statement and
Related Information
Intermediate Accounting
14th Edition
Kieso, Weygandt, and Warfield
4-2
Learning Objectives
4-3
1.
Understand the uses and limitations of an income statement.
2.
Prepare a single-step income statement.
3.
Prepare a multiple-step income statement.
4.
Explain how to report irregular items.
5.
Explain intraperiod tax allocation.
6.
Identify where to report earnings per share information.
7.
Prepare a retained earnings statement.
8.
Explain how to report other comprehensive income.
Income Statement and Related Information
Income
Statement
Format of the
Income
Statement
Usefulness
Limitations
Elements
Single-step
Quality of
Earnings
Multiple-step
Condensed income
statements
Reporting
Irregular Items
Discontinued
operations
Extraordinary items
Intraperiod tax
allocation
Earnings per share
Unusual gains and
losses
Changes in
accounting
principles
Retained earnings
statement
Comprehensive
income
Changes in
estimates
Corrections of
errors
4-4
Special
Reporting Issues
Income Statement
Usefulness

Evaluate past performance.


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Predicting future performance.
Help assess the risk or uncertainty of
achieving future cash flows.
LO 1 Understand the uses and limitations of an income statement.
Income Statement
Limitations

Companies omit items that cannot be
measured reliably.


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Income is affected by the accounting
methods employed.
Income measurement involves
judgment.
LO 1 Understand the uses and limitations of an income statement.
Income Statement
Quality of Earnings
Companies have incentives to manage income to meet or
beat Wall Street expectations, so that

market price of stock increases and

value of stock options increase.
Quality of earnings is reduced if earnings management
results in information that is less useful for predicting future
earnings and cash flows.
4-7
LO 1 Understand the uses and limitations of an income statement.
Format of the Income Statement
Elements of the Income Statement
Revenues – Inflows or other enhancements of assets or
settlements of its liabilities that constitute the entity’s ongoing
major or central operations.
Examples of Revenue Accounts
4-8

Sales

Dividend revenue

Fee revenue

Rent revenue

Interest revenue
LO 1 Understand the uses and limitations of an income statement.
Format of the Income Statement
Elements of the Income Statement
Expenses – Outflows or other using-up of assets or
incurrences of liabilities that constitute the entity’s ongoing
major or central operations.
Examples of Expense Accounts
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
Cost of goods sold

Rent expense

Depreciation
expense

Salary expense

Interest expense
LO 1 Understand the uses and limitations of an income statement.
Format of the Income Statement
Elements of the Income Statement
Gains – Increases in equity (net assets) from peripheral or
incidental transactions.
Losses - Decreases in equity (net assets) from peripheral or
incidental transactions.
Gains and losses can result from
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
sale of investments or plant assets,

settlement of liabilities,

write-offs of assets.
LO 1 Understand the uses and limitations of an income statement.
Single-Step Format
Single-Step Income
Statement
Revenues
Expenses
SingleStep
Net Income
No distinction between
Operating and Non-operating
categories.
4-11
Income Statement (in thousands)
Revenues:
Sales
$ 285,000
Interest revenue
17,000
Total revenue
302,000
Expenses:
Cost of goods sold
149,000
Selling expense
10,000
Administrative expense
43,000
Interest expense
21,000
Income tax expense
24,000
Total expenses
Net income
247,000
$ 55,000
Earnings per share
$
0.75
LO 2 Prepare a single-step income statement.
E4-4: Prepare an income
statement from the data below.
Single-Step Format
Income Statement
For the year ended Dec. 31, 2012
Administrative expense:
Officers' salaries
Revenues:
$
4,900
Sales
Depreciation
3,960
Rental revenue
Cost of goods sold
63,570
Rental revenue
17,230
Selling expense:
$
96,500
17,230
Total revenues
113,730
Expenses:
Cost of goods sold
63,570
17,150
Transportation-out
2,690
Selling expense
Sales commissions
7,980
Administrative exense
8,860
Depreciation
6,480
Interest expense
1,860
96,500
Income tax expense
7,580
Income tax expense
7,580
Total expenses
99,020
Interest expense
1,860
Sales
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Net income
$
14,710
LO 2 Prepare a single-step income statement.
Single-Step Format
Review
The single-step income statement emphasizes
a. the gross profit figure.
b. total revenues and total expenses.
c. extraordinary items more than it is emphasized in the
multiple-step income statement.
d. the various components of income from continuing
operations.
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LO 2 Prepare a single-step income statement.
Format of the Income Statement
Multiple-Step Income Statement

Separates operating transactions from nonoperating
transactions.

Matches costs and expenses with related revenues.

Highlights certain intermediate components of
income that analysts use.
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LO 3 Prepare a multiple-step income statement.
Multiple-Step Format
Intermediate Components of the Income Statement
1. Operating section
2. Nonoperating section
3. Income tax
4. Discontinued operations
5. Extraordinary items
6. Earnings per share
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LO 3 Prepare a multiple-step income statement.
Multiple-Step Format
The presentation
divides information
into major sections.
1. Operating Section
2. Nonoperating
Section
3. Income tax
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Income Statement (in thousands)
Sales
Cost of goods sold
Gross profit
Operating expenses:
Selling expenses
Administrative expenses
Total operating expense
Income from operations
Other revenue (expense):
Interest revenue
Interest expense
Total other
Income before taxes
Income tax expense
Net income
$ 285,000
149,000
136,000
10,000
43,000
53,000
83,000
$
17,000
(21,000)
(4,000)
79,000
24,000
55,000
LO 3 Prepare a multiple-step income statement.
Illustration (E4-4): Prepare
an income statement from the
data below.
Multiple-Step Format
Income Statement
For the year ended Dec. 31, 2012
Administrative expense:
Officers' salaries
Sales
$
4,900
Cost of goods sold
Depreciation
3,960
Cost of goods sold
63,750
Operating Expenses:
Rental revenue
17,230
Selling expense
Selling expense:
32,750
17,150
Administrative exense
2,690
Sales commissions
7,980
Income from operations
Depreciation
6,480
Other revenue (expense):
96,500
Income tax expense
7,580
Interest expense
1,860
8,860
Total operating expenses
26,010
6,740
Rental revenue
17,230
Interest expense
(1,860)
Total other
15,370
Income before tax
22,110
Income tax expense
Net income
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96,500
63,750
Gross profit
Transportation-out
Sales
$
7,580
$
14,530
Multiple-Step Format
Review
A separation of operating and non operating activities of a
company exists in
a. both a multiple-step and single-step income statement.
b. a multiple-step but not a single-step income statement.
c. a single-step but not a multiple-step income statement.
d. neither a single-step nor a multiple-step income
statement.
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LO 3 Prepare a multiple-step income statement.
Reporting Irregular Items
Companies are required to report irregular items in the
financial statements so users can determine the long-run
earning power of the company.
Illustration 4-5
Number of Irregular Items
Reported in a Recent Year
by 500 Large Companies
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LO 4 Explain how to report irregular items.
Reporting Irregular Items
Irregular items fall into six categories
1. Discontinued operations.
2. Extraordinary items.
3. Unusual gains and losses.
4. Changes in accounting principle.
5. Changes in estimates.
6. Corrections of errors.
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LO 4 Explain how to report irregular items.
Reporting Irregular Items
Discontinued Operations
Occurs when,
(a) company eliminates the

results of operations and

cash flows of a component.
(b) there is no significant continuing involvement in that
component.
Amount reported “net of tax.”
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LO 4 Explain how to report irregular items.
Reporting Discontinued Operations
Illustration: KC Corporation had after tax income from continuing
operations of $55,000,000 for the year. During the year, it disposed
of its restaurant division at a pretax loss of $270,000. Prior to
disposal, the division operated at a pretax loss of $450,000 for the
year. Assume a tax rate of 30%. Prepare a partial income
statement for KC.
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Income from continuing operations
Discontinued operations:
Loss from operations, net of $135,000 tax
Loss on disposal, net of $81,000 tax
Total loss on discontinued operations
$55,000,000
Net income
$54,496,000
315,000
189,000
504,000
LO 4 Explain how to report irregular items.
Reporting Discontinued Operations
Discontinued
Operations are reported
after “Income from
continuing operations.”
Previously labeled as
“Net Income”.
Moved to
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Income Statement (in thousands)
Sales
Cost of goods sold
Gross profit
Interest expense
Total other
Income before taxes
Income tax expense
Income from continuing operations
Discontinued operations:
Loss from operations, net of tax
Loss on disposal, net of tax
Total loss on discontinued operations
Net income
$ 285,000
149,000
136,000
(21,000)
(4,000)
79,000
24,000
55,000
315
189
504
$ 54,496
LO 4
Reporting Irregular Items
Extraordinary items are nonrecurring material items that
differ significantly from a company’s typical business activities.
Extraordinary Item must be both of an

Unusual Nature and

Occur Infrequently
Company must consider the environment in which it operates.
Amount reported “net of tax.”
4-24
LO 4 Explain how to report irregular items.
Reporting Extraordinary Items
Are these items Extraordinary?
(a) A large portion of a tobacco manufacturer’s crops
are destroyed by a hail storm. Severe damage from
hail storms in the locality where the manufacturer
grows tobacco is rare.
YES
(b) A citrus grower's Florida crop is damaged by frost.
NO
(c) A company sells a block of common stock of a
publicly traded company. The block of shares, which
represents less than 10% of the publicly-held
company, is the only security investment the
company has ever owned.
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YES
LO 4 Explain how to report irregular items.
Reporting Extraordinary Items
Are these items Extraordinary?
(d) A large diversified company sells a block of shares
from its portfolio of securities which it has acquired
for investment purposes. This is the first sale from
its portfolio of securities.
(e) An earthquake destroys one of the oil refineries
owned by a large multi-national oil company.
Earthquakes are rare in this geographical location.
(f)
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A company experiences a material loss in the
repurchase of a large bond issue that has been
outstanding for 3 years. The company regularly
repurchases bonds of this nature.
NO
YES
NO
LO 4
Reporting Extraordinary Items
Illustration: KC Corporation had after tax income from continuing
operations of $55,000,000 during the year. In addition, it suffered
an unusual and infrequent pretax loss of $770,000 from a volcano
eruption. The corporation’s tax rate is 30%. Prepare a partial
income statement for KC Corporation beginning with income from
continuing operations.
Income from continuing operations
Extraordinary loss, net of $231,000 tax
$55,000,000
539,000
Net income
$54,461,000
($770,000 x 30% = $231,000 tax)
4-27
LO 4 Explain how to report irregular items.
Reporting Extraordinary Items
Extraordinary Items
are reported after
“Income from continuing
operations.”
Previously labeled as
“Net Income”.
Income Statement (in thousands)
Sales
Cost of goods sold
Gross profit
$ 285,000
149,000
136,000
Other revenue (expense):
Interest revenue
Interest expense
Total other
Income before taxes
Income tax expense
Income from continuing operations
Extraordinary loss, net of tax
Net income
17,000
(21,000)
(4,000)
79,000
24,000
55,000
539
$ 54,461
Moved to
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LO 4
Reporting Extraordinary Items
Illustration 4-8
Income Statement Presentation
of Extraordinary Items
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LO 4
Reporting Irregular Items
Reporting when both
Discontinued
Operations and
Extraordinary Items
are present.
Discontinued
Operations
Extraordinary Items
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Income Statement (in thousands)
Sales
Cost of goods sold
Gross profit
Income before taxes
Income tax expense
Income from continuing operations
Discontinued operations:
Loss from operations, net of tax
Loss on disposal, net of tax
Total loss on discontinued operations
Income before extraordinary item
Extraordinary loss, net of tax
Net income
$ 285,000
149,000
136,000
79,000
24,000
55,000
315
189
504
54,496
539
$ 54,496
LO 4
Reporting Irregular Items
Review
Irregular transactions such as discontinued operations and
extraordinary items should be reported separately in
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a.
both a single-step and multiple-step income
statement.
b.
a single-step income statement only.
c.
a multiple-step income statement only.
d.
neither a single-step nor a multiple-step income
statement.
LO 4 Explain how to report irregular items.
Reporting Irregular Items
Unusual Gains and Losses
Material items that are unusual or infrequent, but not both,
should be reported in a separate section just above “Income
from continuing operations before income taxes.”
Examples can include:

Write-downs of inventories

Foreign exchange transaction gains and losses
The Board prohibits net-of-tax treatment for these items.
4-32
LO 4 Explain how to report irregular items.
Reporting Irregular Items
Unusual Gains and Losses
4-33
Illustration 4-9
Income Statement
Presentation of Unusual
Charges
LO 4 Explain how to report irregular items.
Reporting Irregular Items
Changes in Accounting Principles

Retrospective adjustment.

Cumulative effect adjustment to beginning retained
earnings.

Approach preserves comparability.

Examples include:
►
change from FIFO to average cost.
►
change from the percentage-of-completion to the
completed-contract method.
4-34
LO 4 Explain how to report irregular items.
Reporting Irregular Items
Change in Accounting Principle: Gaubert Inc. decided in
March 2012 to change from FIFO to weighted-average inventory
pricing. Gaubert’s income before taxes, using the new weightedaverage method in 2012, is $30,000.
Pretax Income Data
Illustration 4-10
Calculation of a Change in
Accounting Principle
Illustration 4-11
Income Statement
Presentation of a Change
in Accounting Principle
(Based on 30% tax rate)
4-35
LO 4 Explain how to report irregular items.
Reporting Irregular Items
Changes in Estimate
4-36

Accounted for in the period of change and future periods.

Not handled retrospectively.

Not considered errors or extraordinary items.

Examples include:
►
Useful lives and salvage values of depreciable assets.
►
Allowance for uncollectible receivables.
►
Inventory obsolescence.
LO 4 Explain how to report irregular items.
Change in Estimate Example
Change in Estimate: Arcadia HS, purchased equipment for
$510,000 which was estimated to have a useful life of 10 years
with a salvage value of $10,000 at the end of that time.
Depreciation has been recorded for 7 years on a straight-line
basis. In 2012 (year 8), it is determined that the total estimated
life should be 15 years with a salvage value of $5,000 at the
end of that time.
Questions:
4-37

What is the journal entry to correct the prior years’
depreciation?

Calculate the depreciation expense for 2012.
LO 4 Explain how to report irregular items.
Change in Estimate Example
Equipment cost
Salvage value
Depreciable base
Useful life (original)
Annual depreciation
After 7 years
$510,000
First, establish NBV
- 10,000
at date of change in
estimate.
500,000
10 years
$ 50,000 x 7 years = $350,000
Balance Sheet (Dec. 31, 2011)
Fixed Assets:
4-38
Equipment
Accumulated depreciation
$510,000
350,000
Net book value (NBV)
$160,000
LO 4 Explain how to report irregular items.
Change in Estimate Example
Net book value
Salvage value (new)
Depreciable base
Useful life remaining
Annual depreciation
$160,000
5,000
155,000
8 years
$ 19,375
After 7 years
Depreciation
Expense calculation
for 2012.
Journal entry for 2012
Depreciation expense
19,375
Accumulated depreciation
4-39
19,375
LO 4 Explain how to report irregular items.
Reporting Irregular Items
Corrections of Errors

4-40
Result from:
►
mathematical mistakes.
►
mistakes in application of accounting principles.
►
oversight or misuse of facts.

Corrections treated as prior period adjustments.

Adjustment to the beginning balance of retained earnings.
LO 4 Explain how to report irregular items.
Reporting Irregular Items
Corrections of Errors: To illustrate, in 2013, Hillsboro Co.
determined that it incorrectly overstated its accounts
receivable and sales revenue by $100,000 in 2010. In 2013,
Hillboro makes the following entry to correct for this error
(ignore income taxes).
Retained earnings
Accounts receivable
4-41
100,000
100,000
LO 4 Explain how to report irregular items.
Special Reporting Issues
Intraperiod Tax Allocation
Relates the income tax expense to the specific items that give
rise to the amount of the tax expense.
Income tax is allocated to the following items:
(1) Income from continuing operations before tax.
(2) Discontinued operations.
(3) Extraordinary items.
4-42
LO 5 Explain intraperiod tax allocation.
Special Reporting Issues
Intraperiod Tax Allocation
Extraordinary Gain: Schindler Co. has income before income
tax and extraordinary item of $250,000. It has an extraordinary
gain of $100,000 from a condemnation settlement received on
one its properties. Assuming a 30 percent income tax rate.
Illustration 4-13
4-43
LO 5 Explain intraperiod tax allocation.
Special Reporting Issues
Intraperiod Tax Allocation
Extraordinary Loss: Schindler Co. has income before income
tax and extraordinary item of $250,000. It has an extraordinary
loss from a major casualty of $100,000. Assuming a 30 percent
income tax rate.
Illustration 4-14
4-44
LO 5 Explain intraperiod tax allocation.
Example of Intraperiod Tax Allocation
Income Statement (in thousands)
Sales
Cost of goods sold
Total other
$ 285,000
149,000
(4,000)
Income from cont. oper. before taxes
79,000
Income tax expense
24,000
Income from continuing operations
55,000
Note: losses reduce
the total tax
Calculation of
Total Tax
$24,000
Discontinued operations:
Loss on operations, net of $135 tax
315
Loss on disposal, net of $61 tax
189
Total loss on discontinued operations
Income before extraordinary item
Extraordinary loss, net of $231 tax
Net income
(135)
(61)
504
54,496
539
$ 53,957
(231)
$23,573
4-45
LO 5 Explain intraperiod tax allocation.
Special Reporting Issues
Earnings Per Share
Net income - Preferred dividends
Weighted average number of shares outstanding
4-46

An important business indicator.

Measures the dollars earned by each share of common
stock.

Must be disclosed on the the income statement.
LO 6 Identify where to report earnings per share information.
Special Reporting Issues
Earnings Per Share (BE4-8): In 2012, Hollis Corporation
reported net income of $1,000,000. It declared and paid preferred
stock dividends of $250,000. During 2012, Hollis had a weighted
average of 190,000 common shares outstanding. Compute
Hollis’s 2012 earnings per share.
Net income - Preferred dividends
Weighted average number of shares outstanding
$1,000,000
-
$250,000
= $3.95 per share
190,000
4-47
LO 6 Identify where to report earnings per share information.
Special Reporting Issues
Illustration 4-17
Divide by
weightedaverage
shares
outstanding
EPS
4-48
LO 6
Special Reporting Issues
Retained Earnings Statement
Increase

Net income

Net loss

Change in accounting
principle

Dividends

Change in accounting
principles

Error corrections

4-49
Decrease
Error corrections
LO 7 Prepare a retained earnings statement.
Special Reporting Issues
Woods, Inc.
Statement of Retained Earnings
For the Year Ended December 31, 2012
Balance, January 1
Net income
Dividends
Balance, December 31
$
$
1,050,000
360,000
(300,000)
1,110,000
Before issuing the report for the year ended December 31, 2012, you
discover a $50,000 error (net of tax) that caused 2011 inventory to be
overstated (overstated inventory caused COGS to be lower and thus net
income to be higher in 2011). Would this discovery have any impact on the
reporting of the Statement of Retained Earnings for 2012?
4-50
LO 7 Prepare a retained earnings statement.
Special Reporting Issues
Woods, Inc.
Statement of Retained Earnings
For the Year Ended December 31, 2012
Balance, January 1
Prior period adjustment - error correction
Balance, January 1 (restated)
Net income
Dividends
Balance, December 31
4-51
$
$
1,050,000
(50,000)
1,000,000
360,000
(300,000)
1,060,000
LO 7 Prepare a retained earnings statement.
Special Reporting Issues
Restrictions on Retained Earnings
Disclosed
4-52

In notes to the financial statements.

As Appropriated Retained Earnings.
LO 7 Prepare a retained earnings statement.
Special Reporting Issues
Comprehensive Income
All changes in equity during a period except those resulting
from investments by owners and distributions to owners.
Includes:

all revenues and gains, expenses and losses reported in
net income, and

all gains and losses that bypass net income but affect
stockholders’ equity.
4-53
LO 8 Explain how to report other comprehensive income.
Special Reporting Issues
Comprehensive Income
Income Statement (in thousands)
Sales
$ 285,000
Cost of goods sold
149,000
Gross profit
136,000
Operating expenses:
Selling expenses
10,000
Administrative expenses
43,000
Total operating expense
53,000
Income from operations
83,000
Other revenue (expense):
Interest revenue
17,000
Interest expense
(21,000)
Total other
(4,000)
Income before taxes
79,000
Income tax expense
24,000
Net income
$ 55,000
4-54
+
Other Comprehensive
Income

Unrealized gains and
losses on available-forsale securities.

Translation gains and
losses on foreign
currency.

Plus others
Reported in Stockholders’
Equity
LO 8 Explain how to report other comprehensive income.
Special Reporting Issues
Review
Gains and losses that bypass net income but affect
stockholders' equity are referred to as
a. comprehensive income.
b. other comprehensive income.
c. prior period income.
d. unusual gains and losses.
4-55
LO 8 Explain how to report other comprehensive income.
Special Reporting Issues
Companies must display the components of other
comprehensive income in one of three ways:
1. A second separate income statement;
2. A combined income statement of comprehensive
income; or
3. As part of the statement of stockholders’ equity
4-56
LO 8 Explain how to report other comprehensive income.
Special Reporting Issues
Comprehensive
Income
Illustration 4-19
Second income
statement
4-57
LO 8
Special Reporting Issues
Comprehensive
Income
V. Gill Inc.
Combined Statement of Comprehensive Income
For the Year Ended December 31, 2012
Combined
statement
Sales revenue
Cost of goods sold
600,000
Gross profit
200,000
Operating expenses
Net income
Unrealized holding gain, net of tax
Comprehensive income
4-58
$ 800,000
90,000
110,000
30,000
$ 140,000
LO 8
Special Reporting Issues
Comprehensive Income –
Statement of Stockholder’s Equity
Illustration 4-20
4-59
LO 8 Explain how to report other comprehensive income.
Special Reporting Issues
Comprehensive Income –
Balance Sheet Presentation
Illustration 4-21
Presentation of
Accumulated Other
Comprehensive
Income in the
Balance Sheet
Regardless of the display format used, the accumulated other
comprehensive income of $90,000 is reported in the stockholders’
equity section of the balance sheet.
4-60
LO 8 Explain how to report other comprehensive income.
Special Reporting Issues
Review
The FASB decided that the components of other
comprehensive income must be displayed
a. in a second separate income statement.
b. in a combined income statement of comprehensive
income.
c. as a part of the statement of stockholders‘ equity.
d. Any of these options is permissible.
4-61
LO 8 Explain how to report other comprehensive income.
RELEVANT FACTS
4-62

Presentation of the income statement under GAAP follows either a
single-step or multiple-step format. IFRS does not mention a singlestep or multiple-step approach. Extraordinary items are prohibited
under IFRS.

Under IFRS, companies must classify expenses by either nature or
function. GAAP does not have that requirement, but the U.S. SEC
requires a functional presentation.

IFRS identifies certain minimum items that should be presented on
the income statement. GAAP has no minimum information
requirements. However, the SEC rules have more rigorous
presentation requirements.
RELEVANT FACTS
4-63

IFRS does not define key measures like income from operations.
SEC regulations define many key measures and provide
requirements and limitations on companies reporting nonGAAP/IFRS information.

GAAP does not require companies to indicate the amount of net
income attributable to non-controlling interest.

GAAP and IFRS follow the same presentation guidelines for
discontinued operations, but IFRS defines a discontinued operation
more narrowly. Both standard- setters have indicated a willingness
to develop a similar definition to be used in the joint project on
financial statement presentation.
RELEVANT FACTS
4-64

Both GAAP and IFRS have items that are recognized in equity as
part of comprehensive income but do not affect net income. GAAP
provides three possible formats for presenting this information:
single income statement, combined statement of comprehensive
income, in the statement of stockholders’ equity. Most companies
that follow GAAP present this information in the statement of
stockholders’ equity. IFRS allows a separate statement of
comprehensive income or a combined statement.

Under IFRS, revaluation of property, plant, and equipment, and
intangible assets is permitted and is reported as other
comprehensive income. The effect of this difference is that
application of IFRS results in more transactions affecting equity but
not net income.
IFRS SELF-TEST QUESTION
Which of the following is not reported in an income statement
under IFRS?
a. Discontinued operations.
b. Extraordinary items.
c. Cost of goods sold.
d. Income tax.
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IFRS SELF-TEST QUESTION
Which of the following statements is correct regarding income
reporting under IFRS?
a. IFRS does not permit revaluation of property, plant, and
equipment, and intangible assets.
b. IFRS provides the same options for reporting comprehensive
income as GAAP.
c.
Companies must classify expenses either by nature or function.
d. IFRS provides a definition for all items presented in the income
statement.
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IFRS SELF-TEST QUESTION
Which of the following is not an acceptable way of displaying the
components of other comprehensive income under IFRS?
a. Within the statement of retained earnings.
b. Second income statement.
c. Combined statement of comprehensive income.
d. All of the above are acceptable.
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