Question

Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2017.

Cash		$50,000
Administrative expenses		100,000
Selling expenses		80,000
Net sales		540,000
Cost of goods sold		210,000
Cash dividends declared (2017)		20,000
Cash dividends paid (2017)		15,000
Discontinued operations (loss before income taxes)		40,000
Depreciation expense, not recorded in 2016		30,000
Retained earnings, December 31, 2016		90,000
Effective tax rate 30%	Exercise 4-8 Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2017 Cash Selling expenses Net sales Cost of goods sold Cash dividends declared (2017) Cash dividends paid (2017) Discontinued operations (loss before income taxes) $50,000 100,000 80,000 540,000 210,000 20,000 15,000 40,000 30,000 90,000 expense, not recorded in 2016 Retained earnings, December 31, 2016 Effective tax rate 30% Compute net income for 2017 Net income Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 10,000 shares of common stock were outstanding during 2017 TUCKER CORPORATION Click if you would like to Show Work for this question: Open Show Work

Answer 1

Net Income :- Particulars Net sales Less: Cost of goods sold Gross Profit Less: Administrative expenses Less: Selling expenses Total expenses Operational Income Discontinued operations (loss before income taxes) Income before taxes Less: Income taxes (30%) Net Income Amounts 540,000 210,000 330,000 100,000 80,000 180,000 150,000 40,000 110,000 33,000 77,000 Amounts 150,000 45,000 105,000 Income Statement (Partial) :- Particulars Income from continuing operations before tax Less: Income taxes @30% Income from continuing operations Discontinued operations :- Discontinued operations (loss before income taxes) Add: Income taxes Income from dis-continuing operations Net Income (40,000) 12,000 (28,000) 77,000 10,000 Shares of common stock outstanding Earnings per share :: Continuing operations Dis-Continuing operations Net Income 10.50 (2.80) 7.70