Solution:
INCOME STATEMENT (Partial) |
||
Income from continuing operations before taxes |
875,390 |
|
Income tax expense |
-228,180 |
|
Income from continuing operations |
647,210 |
|
Discontinued operations: |
||
Loss from disposal of recreational division |
104,330 |
|
Less: Applicable income tax deduction |
31,299 |
-73,031 |
Income before extraordinary item |
574,179 |
|
Extraordinary item: |
||
Major casualty loss |
-90,000 |
|
Net income |
484,179 |
|
Per share of common stock (647,210 / 109,520) |
5.91 |
|
Discontinued operations, net of tax (73,031 / 109,520) |
-0.67 |
|
Income before extraordinary item |
5.24 |
|
Extraordinary item, net of tax (-90,000 / 109,520) |
-0.82 |
|
Net income (484,179 / 109,520) |
4.42 |
|
 
Working:
As previously stated: |
818,700 |
Loss on sales of securties |
-59,800 |
Gain on proceeds of life insurance policy (159,100 - 44,310) |
114,790 |
Error in computation of depreciation |
1,700 |
As computed (61,200/6) - Corrected [(61200-10200)/6] |
|
As restated |
875,390 |
Computation of income tax: |
|
Income from continuing operations before taxes |
875,390 |
Nontaxable income (gain on life insurance) |
-114,790 |
Taxable income |
760,600 |
Tax rate |
0.30 |
Income tax expense |
228,180 |
need help pls --/25 Question 6 View Policies Current Attempt in Progress Kingbird Inc. reported income...
J UI JUDremd-901801 LE+ Send to Gradebook Question 5 View Policies Current Attempt in Progress Whispering Inc. reported income from continuing operations before taxes during 2020 of $793,700. Additional transactions occurring in 2020 but not considered in the $793.700 are as follows. 1. The corporation experienced an uninsured flood loss in the amount of $91,900 during the year. 2. At the beginning of 2018, the corporation purchased a machine for $70,200 (salvage value of $11,700) that had a useful life...
Show Attempt History Current Attempt in Progress Splish Inc. reported income from continuing operations before taxes during 2020 of $796,800. Additional transactions occurring in 2020 but not considered in the $796,800 are as follows. 1. The corporation experienced an uninsured flood loss in the amount of $94,100 during the year. 2. At the beginning of 2018, the corporation purchased a machine for $81,000 (salvage value of $13,500) that had a useful life of 6 years. The bookkeeper used straight-line depreciation...
1. 2. Whispering Inc. reported income from continuing operations before taxes during 2020 of $793,700. Additional transactions occurring in 2020 but not considered in the $793,700 are as follows. The corporation experienced an uninsured flood loss in the amount of $91,900 during the year. At the beginning of 2018, the corporation purchased a machine for $70,200 (salvage value of $11,700) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020, but failed...
1 2 Bramble Inc. reported income from continuing operations before taxes during 2020 of $802,600. Additional transactions occurring in 2020 but not considered in the $802,600 are as follows. The corporation experienced an uninsured flood loss in the amount of $92.900 during the year. At the beginning of 2018, the corporation purchased a machine for $72,000 (salvage value of $12,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2018,2019, and 2020, but failed to...
Pina Colada Inc. reported income from continuing operations before tax of $2,058,500 during 2020. Additional transactions occurring in 2020 but not included in the $2,058,500 were as follows: 1. The corporation experienced an insured flood loss of $92,000 during the year. 2. At the beginning of 2018, the corporation purchased a machine for $70,800 (residual value of $17,400) that has a useful life of six years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020, but failed to deduct...
Sage Hill Inc reported income from continuing operations before taxes during 2017 of $2,300,000. Additional transactions occurring in 2017 but not considered in the $2,300,000 are as follows. 1. Again of $107.000 (pretax) as a result of selling securities from its investment portfolio. 2. A $24,000 loss before taxes as a result of operating the discontinued clothing division during 2017 3. A loss of $66,000 before taxes as a result of disposing of its clothing division. Assume that this transaction...
please help fill in what i got wrong. also please show all work , im really trying to understand this thank you!!! Your answer is partially correct. Tamarisk Inc. reported income from continuing operations before taxes during 2020 of $805,200. Additional transactions occurring in 2020 but not considered in the $805,200 are as follows. 1. 2. 3. 4. The corporation experienced an uninsured flood loss in the amount of $90,700 during the year. At the beginning of 2018, the corporation...
Problem 4-04 a-b (Part Level Submission) Sarasota Inc. reported income from continuing operations before tax of $2,864,000 during 2020. Additional transactions occurring in 2020 but not included in the $2,864,000 were as follows: 1. The corporation experienced an insured flood loss of $128,000 during the year. 2. At the beginning of 2018, the corporation purchased a machine for $74,400 (residual value of $19,200) that has a useful life of six years. The bookkeeper used straight-line depreciation for 2018, 2019, and...
Problem 4-04 a-bGrouper Inc. reported income from continuing operations before tax of $2,416,500 during 2020. Additional transactions occurring in 2020 but not included in the $2,416,500 were as follows:1.The corporation experienced an insured flood loss of $108,000 during the year.2.At the beginning of 2018, the corporation purchased a machine for $64,800 (residual value of $14,400) that has a useful life of six years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020, but failed to deduct the residual value...
Maher Inc. reported income from continuing operations before taxes during 2020 of $790,000. Additional transactions occurring in 2020 but not used in computing the $790,000 are as follows. > Sale of securities held as a part of its portfolio resulted in a loss of $57,000 (pretax). > When its president died, the corporation realized $150,000 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $46,000....