Macroteledyne,Inc.'s income from continuing operations before taxes was $2,000,000 for the year ended December 31,2010.The company's effective tax rate is 40% and during the year the following events also took place:
The company sold one of its divisions at a gain of $250,000.The division had an operating loss of $185,000 through the date of disposal.
A flood destroyed a warehouse owned by the company.The amount of the uninsured loss was $375,000.This was the first flood ever in this area.
Required: Prepare the lower portion of the income statement,from "income from continuing operations before taxes" through "net income",for the year ended 12/31/10.

Question

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The Answer of Macroteledyne,Inc.'s income from continuing operations before taxes was $2,000,000 for the year ended December 31,2010.The company's effective tax rate is 40% and during the year the following events also took place:
The company sold one of its divisions at a gain of $250,000.The division had an operating loss of $185,000 through the date of disposal.
A flood destroyed a warehouse owned by the company.The amount of the uninsured loss was $375,000.This was the first flood ever in this area.
Required: Prepare the lower portion of the income statement,from "income from continuing operations before taxes" through "net income",for the year ended 12/31/10.