Problem 13-6AA Income statement computations and format LO A2 [The following inf
ID: 2498540 • Letter: P
Question
Problem 13-6AA Income statement computations and format LO A2
[The following information applies to the questions displayed below.]
Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year end December 31, 2013, follow.
Problem 13-6AA Part 3
What is the total amount of after-tax income (loss) associated with the discontinued segment?
After-tax income from discounted segment:
Problem 13-6AA Part 4
What is the amount of income (loss) before the extraordinary items?
Income before extraordinary items:
Problem 13-6AA Part 5
What is the amount of net income for the year?
Net Income:
Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year end December 31, 2013, follow.
Explanation / Answer
After tax income from discountinued operations: Loss from operating a discontinued segment 19,350 Gain on sale of discontinued segment’s assets (pretax) 39,500 Pre tax gain 20,150 Tax - 40% 8,060.0 After tax income from discountinued operations: 12,090.0 Income statement Net sales 1,009,500 Cost of goods sold 493,500 Gross profit 516,000 Operating expenses: Advertising Supplies Depreciation: building 53,100 Depreciation Equipment 35,100 Loss on sale of equipment 26,950 Other operating expenses 107,500 Correction of overstatement of prior year’s sales 17,100 Loss from settlement of lawsuit 24,850 Total operating expenses 264,600 Profit from operations 251,400 Other income: Interest revenue 15100 Gain from settlement of lawsuit 45,100 Income from discountinued segment 20,150 Income before extaordinary income: 331,750 Extraordinary income: Gain on insurance recovery of tornado damage 30,220 Income before tax 361,970 Tax 144,788 Net income 217,182