Question

financial statements for the year 2018 include the following:

Income from continuing operations, net of tax……………………… $850,000
Prior Period Adjustment, increased 2017 net income, net of tax……. $100,000
Loss from Discontinued Operations, net of tax……………………… $50,000
Cash dividends paid to common stockholders………………………..$20,000
Cash dividends paid to preferred stockholders……………………….. $5,000

On the basis of this information, the net income for 2018 is

		$775,000
		$800,000
		$850,000
		$885,000

Answer 1

Income from continuing operations, net of tax	850000
Loss from Discontinued Operations, net of tax	-50000
Net income for 2018	800000
Option 2 is correct