Question

2a: what is the amount of income from continuing operations before income tax? *THE ANSWER IS NOT $359520 SO IF YOU GET THAT ITS WRONG*

2b

2c

3

4

are in photos

Required information [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 follow. Debit Credit 14,800 $ $ 34,800 26,650 44,800 107,200 72,400 44,800 176,100 a. Interest revenue b. Depreciation expense-Equipment c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segment (pretax) j. Gain on insurance recovery of tornado damage k. Net sales 1. Depreciation expense-Buildings m. 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 tax expense 9. Cost of goods sold 19,050 29,920 1,006,500 52,800 16,800 38,000 24,550 490,500

Answer 1

INCOME STATEMENT
Net sales		1006500
less:cost of goods sold		-490500
Gross profit		516000
operating expense
Depreciation expense -equipment	34800
Depreciation expense -building	52800
other operating expense	107200
Total operating expense		-194800
Operating income		321200
Other revenue /(expense)
Interest revenue	14800
Gain from settlement of lawsuit	44800
Loss on sale of equipment	-26650
Loss on settlement of lawsuit	-24550	8400
Income from continuing operations before tax (2a)		329600
Less:Income tax expense (329600*30%) (2b)		98880
Income from continuing operations (2c)		230720

3)

Discontinued operations
Loss from operations	-19050
Gain from sale of assets of discontinued operations	38000
Total income	18950
less:Tax expense (18950 *30%)	5685
Total income from discontinued operations after tax	13265

4)

Income from continuing operations (2c)	230720
Total income from discontinued operations after tax	13265
Extraordinary items
Gain on insurance recovery from damage ,net of taxes [29920(1-.30)]	20944
Net income		264929