The following are partial income statement account balances taken from the Decem
ID: 2551139 • Letter: T
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, $420,000; interest revenue, $52,000; before-tax loss on discontinued operations, $520,000; and loss on sale of investments, $62,000. 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 $910,000 income from continuing operations before income taxes. Include appropriate basic EPS disclosures. The company had 120,000 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, $420,000; interest revenue, $52,000; before-tax loss on discontinued operations, $520,000; and loss on sale of investments, $62,000. Income tax expense has not yet been recorded. The income tax rate is 40%.
Explanation / Answer
White & Sons, Inc
Partial Income Statement For the Year Ended December 31, 2016
Income before income taxes and extraordinary item $ 9,10,000
Income Tax Expense ($ 3,64,000)
Income before extraordinary item $ 5,46,000
Extraordinary item gain (loss):
Loss on discontinued operations ($520000*60%) ($ 3,12,000)
Net income $ 2,34,000
Earnings per share:
Income before extraordinary item $ 5,46,000
Gain (Loss from earthquake) $ 2,08,000
Net Income $ 3,38,000
Income tax expense = $910000 x 40% = $ 364000
Note: Restructuring costs, interest revenue, and loss on sale of investments are included in income before income taxes and extraordinary item
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.