Reference no: EM131993714

The income statement of Tawls company for the year ended December 31, 2006, shows:

            Revenue from sales:                                              980,000

            COGS:                                                                 510,000

            Gross Profit:                                                          470,000

            Operating Expenses:

                        Selling Expense:                                          110,000

                        General Expenses                                       140,000 250,000

            Operating Income:                                                  220,000

            Equity on earnings of Nonconsolidated subsidiary:     60,000

            Operating income before income taxes                     280,000

            Taxes related to operations:                                       100,000

            Net income from operations                                       180,000

            Extraordinary loss from flood                                    

                        (less applicable taxes of 50,000)                      (120,000)

            Minority share of earnings                                         (40,000)

                        Net income                                                     $20,000

a. Compute the net earnings remaining after removing nonrecurring items

b. Determine the earnings from the nonconsolidated subsidiary

c. For the subsidiary that was consolidated, what amount of income would have been included if this subsidiary had been consolidated

d. What earnings relate to minority shareholders of subsidiary that was consolidated

e. Determine the total tax amount.