Bramble Corporation had income from operations of $6,516,200. In addition, it su
ID: 2334435 • Letter: B
Question
Bramble Corporation had income from operations of $6,516,200. In addition, it suffered an unusual and infrequent pretax loss of $773,100 from a volcano eruption, interest revenue of $15,630, and a write-down on buildings of $53,550. The corporation’s tax rate is 30%. Prepare a partial income statement for Bramble beginning with Income from operations. The corporation had 4,924,900 shares of common stock outstanding during 2017.
BRAMBLE CORPORATIONIncome Statement (Partial)
December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
Per Share Common StockImpairment Loss - BuildingIncome Before Income TaxIncome From OperationsIncome TaxInterest RevenueLoss due to Volcano EruptionOther Expenses and LossesOther Revenues and GainsNet income / (Loss)
$Per Share Common StockImpairment Loss - BuildingIncome Before Income TaxIncome From OperationsIncome TaxInterest RevenueLoss due to Volcano EruptionOther Expenses and LossesOther Revenues and GainsNet income / (Loss)
Per Share Common Stock Impairment Loss - Building Income Before Income Tax Income From Operations Income Tax Interest Revenue Loss due to Volcano Eruption Other Expenses and Losses Other Revenues and Gains Net income / (Loss)
Per Share Common StockImpairment Loss - BuildingIncome Before Income TaxIncome From OperationsIncome TaxInterest RevenueLoss due to Volcano EruptionOther Expenses and LossesOther Revenues and GainsNet income / (Loss)
Per Share Common Stock Impairment Loss - Building Income Before Income Tax Income From Operations Income Tax Interest Revenue Loss due to Volcano Eruption Other Expenses and Losses Other Revenues and Gains Net income / (Loss)
$Per Share Common Stock Impairment Loss - Building Income Before Income Tax Income From Operations Income Tax Interest Revenue Loss due to Volcano Eruption Other Expenses and Losses Other Revenues and Gains Net income / (Loss)
Per Share Common Stock Impairment Loss - Building Income Before Income Tax Income From Operations Income Tax Interest Revenue Loss due to Volcano Eruption Other Expenses and Losses Other Revenues and Gains Net income / (Loss)
Per Share Common Stock Impairment Loss - Building Income Before Income Tax Income From Operations Income Tax Interest Revenue Loss due to Volcano Eruption Other Expenses and Losses Other Revenues and Gains Net income / (Loss)
Per Share Common StockImpairment Loss - BuildingIncome Before Income TaxIncome From OperationsIncome TaxInterest RevenueLoss due to Volcano EruptionOther Expenses and LossesOther Revenues and GainsNet income / (Loss)
$Per Share Common StockImpairment Loss - BuildingIncome Before Income TaxIncome From OperationsIncome TaxInterest RevenueLoss due to Volcano EruptionOther Expenses and LossesOther Revenues and GainsNet income / (Loss)
Per Share Common StockImpairment Loss - BuildingIncome Before Income TaxIncome From OperationsIncome TaxInterest RevenueLoss due to Volcano EruptionOther Expenses and LossesOther Revenues and GainsNet income / (Loss)
$Explanation / Answer
Solution:
Bramble Corporation Income Statement (Partial) For the year ended December 31, 2017 Particulars Amount Income from operations $6,516,200.00 Income tax expense (30%) $1,954,860.00 Income before extraordinary items $4,561,340.00 Extraordinary item - Loss from casualty $773,100.00 Less: Applicable income tax (30%) $231,930.00 $541,170.00 Net Income $4,020,170.00 Earning per share: Income before extraordinary items ($4,561,340 / 4924900) $0.93 Extraordinary loss net of tax ($541,170 / 4924900) -$0.11 Net Income ($4,020,170 / 4924900) $0.82