Problem 13-6AA Income statement computations and format LO A2 [The following inf
ID: 2498560 • 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 2
TAX RATE = 30 %
2.1 What is the amount of income from continuing operations before income taxes
Income from continuing operations before taxes:
2.2 What is the amount of the income taxes expense?
Income taxes expense:
2.3 What is the amount of income from continuing operations?
Income from continuing operations after taxes:
Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year end December 31, 2013, follow.
Explanation / Answer
Profit & Loss Account
Particulars Amount Net Sales 1009500 Less : Operating Expenses and income COGS 493500 Depreciation expense—Equipment. 35100 Other operating Exp 107500 Depreciation Exp - Building 53100 Income from Operations 320300 Non - Operating (income) & Expense Interest Income (15,100) Loss on sale of Equipment 26950 Gain from Settlement of Lawsuit (45100) Loss from Settlement of Lawsuit 24850 Income from Continuing Operation pre tax 328700 Less: Tax provision @30% 98610 Income from Continuing Operation post tax 230090 Discontinued and XO items Loss from Discontinued Ops 19,350 Gain on insurance recovery of tornado damage (pretax and extraordinary) (30220) Correction of overstatement of prior year’s sales (pretax) 17100 Gain on sale of discontinued segment’s assets (pretax) (39500) Tax on Disc & XO items @ 30% 9981 Net Gain Discountinued & XO items after tax 23289 23289 NET INCOME 253379