Question

Question 1 Presented below is information related to Dombroski Corp., for the year 2020. Net sales $1,950,000 Cost of goods sold 1,200,000 Selling expenses 95,000 Administrative expenses 70,000 Dividend revenue 30,000 Interest revenue 20,000 Interest expense 45,000 Write-off of goodwill due to impairment 75,000 Depreciation expense omitted in 2018 105,000 Dividends declared 120,000 Effect on prior vears of change in accounting principle (credit) 220.000 INICANA

Answer 1

Answer cost & goods 35 0000 page-on pocepasce a multiple step income statement to 2020 Income statement plabiosis Amount (!) Amount (1) Net Sales 1950000 sold | gross profit operating expenses 95000 Selling expenses Adminishabire expenses 165000 income from operations 585000 other sievenues and gaine dividend revenue Interest revenue 50000 635000 olben expenses and losses 10000 30000 20000 interest expense 45000 75000 120000 515000 154500 360500 loss due to write of goodwill locome before income tax Income tax income from continuing operations discontinued operators loss from operations of discontinued com -168000 - ponent 4 business (net of 72000 income tax effect)42400001 70 71 Gain from disposal of component 4 business chet of 90000 income for cffet) (300000 x 700) net income 210000 42000 402500 per shore common stock : income from continuing operations (360500128000) discontinued operations ( 42000/200000) net income ( 462500/200000) 0.21 2.01