the income statement of transparency accounting services ltd reported the following 4375831

The income statement of Transparency Accounting Services Ltd. reported the following results of operations: Earnings from operations……………………………………………………………. $178,064 Income from discontinued operations, net of tax…………………………….. 149,755 Income tax expense……………………………………………………………………….. 58,761 Net earnings……………………………………………………………………………….. 269,058 Other comprehensive income: Unrealized loss on investments…………………………………………………….. (32,961) Comprehensive net income…………………………………………………………. $236,097 Suppose Transparency’s management had reported the company’s results of operations in this manner: Earnings before income taxes ………………………………………………………. $352,384 Income tax expense ……………………………………………………………………… 116,287 Net earnings ……………………………………………………………………………… $236,097 Requirements 1. Does it really matter how a company reports its operating results? Why? Who could be helped by management’s action? Who could be hurt? 2. Suppose Transparency’s management decides to report its operating results in the second manner. Evaluate the ethics of this decision. View Solution:
The income statement of Transparency Accounting Services Ltd reported the

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