Question
Bradenton Company Reports the following for 2012:
1. Prepare a partial income statement for Bradenton Company beginning with income from continuing operations before income tax.
$
Bradenton, Inc. Partial Income Statement For the Year Ended December 31, 2012 Income from continuing operations before income tax $ Income tax expense Income from continuing operations $ Loss from discontinued operations (net of tax) Income before extraordinary item (net of tax) $ Extraordinary item: Loss due to hurricane Net income $
Explanation / Answer
Hi,
Please find the answer as follows:
Thanks.
Income from continuing operations before income tax 500000 Less Income Tax Expense (500000*.40) 200000 Income from continuing operations 300000 Loss from discontinued operations (Net of Tax) -90000 Income before extraordinary item 210000
Extraordinary item:
Loss due to hurricane 60000 Net Income 150000
EPS (150000/40000)
3.75