Given the Following Information About a Corporation's Current Year Activities,answer
Question 159
Question 159
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 $9.200tax ) Extraordinary loss from hurricane damage (net of $11,000 tax benefit) Loss from disposal of Division W (net of $15,000tax benefit) Unusual loss on sale of equipment Correction of error made in recording depreciation last year (net of $3,000 tax) Effect on prior years’ income of changing depreciation methods (net of $4,000tax ) Debit $90,00054,00037,00045,0009,50013,500 Credit $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)$79,8...
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