Question

Swifty Corp. has 149,190 shares of common stock outstanding. In 2020, the company reports income from continuing operations before income tax of $1,211,100. Additional transactions not considered in the $1,211,100 are as follows.

1.		In 2020, Swifty Corp. sold equipment for $37,400. The machine had originally cost $84,500 and had accumulated depreciation of $32,900. The gain or loss is considered non-recurring.
2.		The company discontinued operations of one of its subsidiaries during the current year at a loss of $194,600 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $91,700 before taxes; the loss from disposal of the subsidiary was $102,900 before taxes.
3.		An internal audit discovered that amortization of intangible assets was understated by $35,800 (net of tax) in a prior period. The amount was charged against retained earnings.
4.		The company recorded a non-recurring gain of $127,200 on the condemnation of some of its property (included in the $1,211,100).

Analyze the above information and prepare an income statement for the year 2020, starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 19% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, e.g. 1.47.)

Analyze the above information and prepare an income statement for the year 2020, starting with income from continuing operations before income tax. Compute earnings per share asi of 19% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, e.g. 1.47.) SWIFTY CORP. Income Statement (Partial) For the Year Ended December 31, 2020 Income From Continuing Operations Before Income Tax 121100 Income Tax Income From Continuing Operations Discontinued Operations Loss from Operations of Discontinued Subsidiary Less Applicable Income Tax Reduction Loss from Disposal of Subsidiary Less Applicable Income Tax Reduction Income Tax TLoss from Disposal of Subsidiary Income From Continuing Operations Discontinued Operations, Net of Tax Net Income / (Loss) Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT LINK TO TEXT

Answer 1

Alue/ Income stalimeyle Income stylement of a firm shows the financial result of q firm by way of o the income or lost in the businesse - Swifty coperatin partial Income Styrement for the year ended December 3 2020 Partical gus ant. ($1 Art 632 ami.c47 Income from Coqninying Operation before Income Taxt- (196900 || Income Tax (1196.goo X 197 1 627411) Income hom centroying Ope497/ 969489. Loiscontiquel Operation! i loss hom opevations of discontinued subsidiary 91700 - Applicable Income (fx Redycz on (91700X152 ( 7423) | 74277 - 102900 loss bom Djupavel of subsidery -: Applicable Income Tax Reduction (1955) | 83349 loss from discontinued Operatin (Net of Tax) |(157626) Net Income 811863 964 449 Egroings per shque Income fom Continuing opevations (1431907 Discontinued Opations (Nel of Tax) _ ( 157626 /149190 shares) 6.4983 (1.0565) 5.4418 Net_Iq.come (Edning ter sbave)

Working Notes Income before informe_tax_hom_Gorjoying Operql-ino spel). 1211100 (1.499.00) Docome. Before combbying opewetjegs before tyx -: loss on sale of_Equipment crrying Valye of_Asset - Syle Price) [( 84500 - 32900)_-_33400) - Net Income from continuing operations belove income tx 1196900 2. The n00- recurringggia_is_glequy_iqclyded in the income of contiguing opeq tiens_Hene_not_ consideweloggia.-- against the 13. Amortization Expense is considered as charged rengiged EquaingsHence-noticemidovel.com