Abc corporation had net income from continuing operations

Assignment Help Financial Accounting

Reference no: EM13370973

ABC Corporation had Net Income from continuing operations for year 2011 totaling $340,000. The accountant did not take into account the subsequent information (Assume a tax rate of 40%):

1. The corporation experienced an uninsured flood loss of $50,000 before taxes. While this loss meets the criterion of an extraordinary item, it has not been recorded.

2. The corporation disposed of its sporting goods division during 2010. This disposal meets the criterion for discontinued operations. The division correctly evaluated income from operating this division of $100,000 before taxes and a loss of $12,000 before taxes on the disposal of the division. All of these events occurred in 2010 and have not been recorded.

Required: Show in good form the income statement of ABC Corporation for 2011 starting with "income from continuing operations." Suppose that ABC's tax rate is 40 percent and 100,000 shares of common stock were outstanding during the year.

Reference no: EM13370973

Questions Cloud

Manufacturing statements and cost behaviortampa foundry : manufacturing statements and cost behaviortampa foundry began operations during the present year manufacturing various

Updike and patterson investments inc upi hold equity : updike and patterson investments inc. upi hold equity investments with a cost basis of 250000. upi accounts for these

Find a real-life outsourcing decision that has been made : find a real-life outsourcing decision that has been made. find the specific reasons for the outsourcing. if information

On 12th july 2011 fred city ordered a new computer at an : on 12th july 2011 fred city ordered a new computer at an anticipated cost of 114400. the computer was received on july

Abc corporation had net income from continuing operations : abc corporation had net income from continuing operations for year 2011 totaling 340000. the accountant did not take

Calafs drillers erects and places into service an offshore : calafs drillers erects and places into service an offshore oil platform on 1st january 2013 at a cost of 10375000.

Pro golf warehouse inc pgw sells gold equipment all through : pro golf warehouse inc. pgw sells gold equipment all through the united states. pgw also sells golf equipment in canada

The dempere imports companys eps in 2011 was 300 and in : the dempere imports companys eps in 2011 was 3.00 and in 2006 it was 1.80. the companys payout ratio is 30 percent

A promissory note has outstanding payments of 650 at the : a promissory note has outstanding payments of 650 at the end of each of the next 5 years. what market price would be

User Account

All Pages