Answer:
Silly Inc Income Statement (partial) For the year ended 31 Dec 2020 |
||
Particulars | Amount ($) | Amount ($) |
Income from continuing operations before income tax | 746500 | |
Less: Income tax (746500-(145400-45700)) | 194040 | |
Income from continuing operations | 552460 | |
Discontinued Operations: | ||
Loss from disposal of recreational division | 122760 | |
Less: Applicable income tax reduction (122760*30%) | 36828 | 85932 |
Net Income | 466528 | |
Earnings per share (552460/128830) | ||
Income from continuing operations | 4.29 | |
Discontinued operations net of tax (85932/128830) | 0.67 | |
Net Income (466528/128830) | 3.62 |
Working Notes:
(802600-92900-64900+(145400-45700)) = 744500
Diff in Depreciation = (72000/6 years) - (72000-12000)/6
=12000-10000
=2000
Income from continuing operations = 744500+2000 = 746500
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