Given the Following Information About a Corporation's Current Year Activities
Question 145
Question 145
Essay
Given the following information about a corporation's current year activities, answer the questions below: Sales Cost of goods sold Other operating expenses Income from operation of discontinued Division W (net of $9,200 tax ) Extraordinary loss from hurricane damage (net of $11,000 tax benefit) Loss from disposal of Division W (net of $15,000 tax benefit) Unusual loss on sale of equipment Effect on prior years’ income of changing depreciation methods (net of $4,000 tax) Debit $90,00054,00037,00045,00012,00013,500Credit $250,00030,800 Compute the amounts that should be reported on the income statement as: (1)Income from continuing operations. (2)Income before extraordinary items and cumulative effect of changes in accounting principles. (3)Net income.
Correct Answer:
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(1)$94,000* (2)$79,800† (3)$29,300‡ Supp...
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