The following are partial income statement account balances extracted from the D

Question

The following are partial income statement account balances extracted from the December 31, 2017, year-end financials of Bio Industries interest revenue $45,000, restructuring costs $320,000, before tax loss on discontinued operations $400,000, loss on sale of investments $50,000. Income tax expense has not yet been recorded, and the income tax rate is 35%.

Prepare the lower portion of the 2017 income statement beginning with $800,000 income from continuing operations before income taxes. Include appropriate EPS disclosures. The company had 100,000 shares of common stock outstanding throughout the year. (Amounts to be deducted should be shown in (parentheses). Round EPS answers to 2 decimal places)

Explanation / Answer

Income form continuin oper=$800,000

Revenue from Non operation=45,000

Restructuing costs=(320,000)

loss on disontinued opeation=(400,000)

loss on sale of investment =(50,000)

Earnings before income=75,000

Tax =0.35*75000=$26,250

Net Income=$48,750

EPS=net income/shares outstnading

=48750/100,000=$0.4875

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