Question

Prepare the December 31, 2018, income statement for Canton Corporation, starting with income from continuing operations before income taxes. (Amounts to be deducted should be indicated with a minus sign.)

Canton Corporation reported the following items in its adjusted trial balance for the year ended December 31, 2018: Income from continuing operations before income taxes Gain on disposal of discontinued component Loss from operations of discontinued component $113,000 30,700 (53,000) Canton is subject to a 30% tax rate. Required: Prepare the December 31, 2018, income statement for Canton Corporation, starting with income from continuing operations before income taxes. (Amounts to be deducted should be indicated with a minus sign.) CANTON CORPORATION Partial Income Statement For the Year Ended December 31, 2018 ncome from continuing operations before income taxes Income tax expense $113,000 33,900 $146,900 ncome from continuing operations Discontinued operations: $21,490 Income from operations of discontinued component Loss from operations of discontinued component 21,490 $168,390 et income

Answer 1

Canton Corporation
Partial Income Statement
For the Year Ended December 31, 2018
Income from continuing operations before income taxes		$113,000
Income tax expense ($113,000 x 30%)		33,900
Income from continuing operations		79,100
Discontinued operations:
Loss from operations of discontinued component ($53000 - $30700)	($22,300)
Income tax benefit ($22,300 x 30%)	$6,690
Loss on discontinued operations		-15,610
Net income		$210,390