Prepare a condensed income statement for violet bick

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Violet Bick Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2014. The 2014 operating results for the company were as follows.

Operating revenues

$12,900,000

Operating expenses

8,700,000

Operating income

$  4,200,000

Analysis discloses that these data include the operating results of the hotel chain, which were operating revenues $2,000,000 and operating expenses $2,500,000. The hotels were sold at a gain of $300,000 before taxes. This gain is not included in the operating results. During the year, Violet Bick suffered an extraordinary loss of $700,000 before taxes, which is not included in the operating results. In 2014, the company had other expenses and losses of $200,000, which are not included in the operating results. The corporation is in the 30% income tax bracket.

Instructions

Prepare a condensed income statement.

Reference no: EM13887686

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