An inexperienced accountant for Fielder Corporation showed the following in Fiel
ID: 2487847 • Letter: A
Question
An inexperienced accountant for Fielder Corporation showed the following in Fielder’s 2014 income statement: Income before income taxes $373,500; Income tax expense $77,100; Extraordinary loss from flood (before taxes) $91,200; and Net income $172,900. The extraordinary loss and taxable income are both subject to a 32% tax rate.
Prepare a corrected income statement beginning with “Income before income taxes
FIELDER CORPORATION Income Statement (Partial) Income before Income Taxes 373500 Income Tax Expense 77100 Extraordinary Loss from Flood 7 29184 Income Tax Expense 55328 Net Income/(Loss) 211888Explanation / Answer
Income before income tax
373500
income tax expenses
-119520
income tax expenses
29184
Extra ordinery losses
-91200
Net income/loss
191964
Income before income tax
373500
income tax expenses
-119520
income tax expenses
29184
Extra ordinery losses
-91200
Net income/loss
191964