Question

Check my w 10 [The following information applies to the questions displayed below) Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31, 2017, follow Part 2 of 4 Debit Credit 15,20 $ $ 35,200 27,ese 45,200 points 107,6ee 176,90 a. Interest revenue b. Depreciation expense-Equipment. C. LOSS on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation Equipment 8. Gain from settlement of Lawsuit h. Accumulated depreciation Buildings 1. Loss from operating a discontinued seprent (pretax) 3. Gain on Insurance recovery of tornado damage k. Net sales 1. Depreciation expense-Buildings . Correction of overstatement of prior year's sales (pretax n. Gain on sale of discontinued segment's assets (pretax) o. Loss from settlement of Lawsuit P. Income taxes expense 9. cost of goods sold 19,450 30,328 1,010,5ee 53,200 17,200 40.000 24,95e 494, see References Problem 13-6 Part 2 20. What is the amount of income from continuing operations before income taxes? 2b. What is the amount of the income taxes expense? 2c. What is the amount of income from continuing operations? Complete this question by entering your answers in the tabs below.

Answer 1

1)	Pretax	Effect 30% tax rate	After tax
A) loss from operating a discontinued segement	$        19,450.00	$        5,835.00	$ 13,615.00
B) Correction of overstatement of prior year's sales (pretax)	$        17,200.00	$        5,160.00	$ 12,040.00
C) Gain on sale of discontinued segment's assets (pretax)	$        40,000.00	$      12,000.00	$ 28,000.00
2)    Income from continuing operations
Net sales	$   1,010,500.00
Interest Revenue	$        15,200.00
Gain from settlement of lawsuit	$        45,200.00
Total revenues and gains		$ 1,070,900.00
Cost of goods sold	$      494,500.00
Depreciation expense—Equipment	$        35,200.00
Depreciation expense—Buildings	$        53,200.00
Other operating expense	$      107,600.00
Loss from settlement of lawsuit	$        24,950.00
Loss on sale of equipment	$        27,050.00
Total Expenses		$    742,500.00
Income from continuing operations before taxes (a)		$    328,400.00
Income taxes expense (30%) (b)		$      98,520.00
Income from continuing operations after taxes ( c)		$    229,880.00