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Problem 4-7 Bridgeport Corp. has 150,240 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,210,400. Additional transactions not considered in the $1,210,400 are as follows In 2017, Bridgeport Corp. sold equipment for $38,300. The machine had originally cost $83,600 and had accumulated depreciation of $31,900. The gain or loss is considered non-recurring. 1. The company discontinued operations criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $90,100 before taxes; the loss from disposal of the subsidiary was $101,800 before taxes f one of its subsidiaries during the current year at a loss of $191,900 before taxes. Assume that this transaction meets the 2. An internal audit discovered that amortization of intangible assets was understated by $38,400 (net of tax) in a prior period. The amount was charged against retained earnings 4. 3. The company had a non-recurring gain of $125,400 on the condemnation of some of its property (included in the $1,210,400) Analyze the above information and prepare an income statement for the year 2017, starting with income from continuing operations before income tax. Compute earnings Aaare as it should be shown on the face of the income statement. (Assume a total effective tax rate of 38% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, e.g. 1.47.) BRIDGEPORT CORP. Income Statement (Partial) $ $ $ $ Click if you would like to Show Work for this question: Open Show Work то ТЕХТ LINK TO TЕXT LINK TO TEXT

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BRIDGEPORT CORP. Income Statement (Partial) For the Year Ended December 31, 2017 $1,085,000 [$1210400 $125400] $412,300 [$1085000 x 38% Income from continuing operations before income taxes Less: Income taxes (38 %) Income from continuing operations $672,700 Discontinued operations: $90,100 Loss from operations of discontinued subsidiary $34,238 $55,862 [Tax $90100 x 38%] Less: Applicable income tax reduction (38%) Loss from disposal of subsidiary $101,800 $38,684 $63,116 [Tax $101800 x 38%] Less: Applicable income tax reduction (38%) Loss from discontinued operations (net of tax) $118,978 Income before extraordinary item $553,722 Extraordinary Item $125,400 -$47,652 Gain on condemnation $77,748 [Given] Less: Applicable tax (38%) $631,470 Net income NOTE: Prior period's error observed this year during audit shall be adjusted against firm's beginning bal. of retained earnings & so not considered here.