Maulder Corporation has income from continuing operations of $264,600 for the ye

Question

Maulder Corporation has income from continuing operations of $264,600 for the year ended December 31, 2014. It also has the following items (before considering income taxes).

Assume all items are subject to income taxes at a 27% tax rate.

Prepare an income statement, beginning with income from continuing operations.

MAULDER CORPORATION
Partial Income Statement
For the Year Ended December 31, 2014

1. An extraordinary loss of $75,900. 2. A gain of $30,000 on the discontinuance of a division. 3. A correction of an error in last year’s financial statements that resulted in a $27,300 understatement of 2013 net income.

Explanation / Answer

Moulder corporation

Partial Income statement

For the yeat ended December 31 2014

Income before income taxes 264600 Less: Taxes @ 27% 71442 Income from continuing operations 193158 Extraordinary Items Add: Extraordinary gain on discintinuing operation 21900 Less: Extraordinary loss 75900 Net Income 139158

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