Wilcox Corporation had income from continuing operations of $759,310 (after taxe

ID: 2416469 • Letter: W

Question

Wilcox Corporation had income from continuing operations of $759,310 (after taxes) in 2014. In addition, the following information, which has not been considered, is as follows.

Present in good form the income statement of Wilcox Corporation for 2014 starting with "income from continuing operations." Assume that Wilcox's tax rate is 30% and 200,000 shares of common stock were outstanding during the year. (Round per share values to 2 decimal places, e.g. $1.48.)

1. In 2014, Wilcox experienced an uninsured earthquake loss in the amount of $285,500. 2. A machine was sold for $135,300 cash during the year at a time when its book value was $107,770. (Depreciation has been properly recorded.) The company often sells machinery of this type. 3. Wilcox decided to discontinue its stereo division in 2014. During the current year, the loss on the disposal of this component of the business was $163,970 less applicable taxes.

Explanation / Answer

Income From continuing operations $778,581

Discontinued operations

Loss on disposale of a copmonent (163,970@70%) (114,779)

Income before extra ordinary income 663,802

Extraordianry loss , net of tax (199,850)

Net income $463,952

Per share of coomon stock- income from $3.89

discontinued operations , net of tax (.57)

Income before extraordianry item 3.32

Extraordianry loss , net of tax (1.00)

Net income 2.32