The following are partial income statement account balances taken from the Decem

Question

The following are partial income statement account balances taken from the December 31, 2016, year-end trial balance of White and Sons, Inc.: restructuring costs, $400,000; interest revenue, $50,000; before-tax loss on discontinued operations, $500,000; and loss on sale of investments, $60,000. Income tax expense has not yet been recorded. The income tax rate is 40%.

Prepare the lower portion of the 2016 income statement beginning with $900,000 income from continuing operations before income taxes. Include appropriate basic EPS disclosures. The company had 100,000 shares of common stock outstanding throughout the year. (Amounts to be deducted should be indicated with a minus sign. Round "EPS" answers to 2 decimal places.)

The following are partial income statement account balances taken from the December 31, 2016, year-end trial balance of White and Sons, Inc.: restructuring costs, $400,000; interest revenue, $50,000; before-tax loss on discontinued operations, $500,000; and loss on sale of investments, $60,000. Income tax expense has not yet been recorded. The income tax rate is 40%.

Explanation / Answer

SOLUTION

White And Sons, Inc.

Partial Income Statement

For the Year Ended December 31, 2016

Amount ($) Income before income taxes and extraordinary item 900,000 Income tax expense (40%) (360,000) Income before extraordinary item 540,000 Extraordinary item gain (loss):   Loss on discontinued operations (net of tax) ($500,000*40%) (200,000) Net Income 340,000 Earnings per share:   Income before extraordinary item 5.40 Gain (Loss) (2.00) Earnings per share 3.40

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.