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Tulsa Company has income before irregular items of $310,000 for the year ended
December 31, 2012. It also has the following items (before considering income taxes):
(1) An extraordinary fire loss of $60,000 and
(2) A gain of $30,000 from the disposal of a division. Assume all items are subject to income taxes at a 30% tax rate.
Instructions
Prepare Tulsa Company's income statement for 2012, beginning with ?oIncome before irregular items?
The board of directors declared and paid a $3,000 dividend in 2009. In 2010, $15,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2010?
Sparks Co. sold merchandise to Boyt Co. on account, $8,500, terms FOB shipping point, 2/10, n/30. The cost of the merchandise sold is $5,100.
There are several methods, LIFO, FIFO, Weighted Average, Market, and Historical Cost. If you are in the retail/wholesale business, would you use the same method that you would use if you were in the manufacturing business?
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