Reference no: EM132549696

Question - Wilcox Corporation had income from continuing operations of $900,000 (after taxes) in 2017. In addition, the following information, which has not been considered, is as follows.

1. A machine was sold for $140,000 cash during the year at a time when its book value was $110,000. (Depreciation has been properly recorded.) The company often sells machinery of this type.

2. Wilcox decided to discontinue its stereo division in 2017. During the current year, the loss on the operations of this component of the business was $210,000 (before taxes).

Required - Present in good form the income statement of Wilcox Corporation for 2017 starting with "income from continuing operations." Assume that Wilcox's tax rate is 30% and 200,000 ordinary shares were outstanding during the year. The corporation declared $800,000 preference dividends and $70,000 ordinary dividends during the year.