Exercise 12-13 Record discontinued operations and other expenses (L012-5) Shaqui

ID: 2337423 • Letter: E

Question

Exercise 12-13 Record discontinued operations and other expenses (L012-5) Shaquille Corporation has operating income of S1.2 million, a loss on write-down of inventory of $150,000, and income tax expense of $300,000 for the year ended December 31, 2018, before considering the following item: a $225,000 gain, after tax, from the disposal of an operating segment Required: Prepare the 2018 multiple step income statement for Shaquille Corporation beginning with operating income. (Enter your answer in dollars, not millions. i.e., $5.5 million should be entered as 5,500,000).) SHAQUILLE CORPORATION Income Statement For the Year Ended December 31, 2018 Discontinued operation: Gain from disposal of operating segment, net of tax 225,000 Net income $ 975,000

Explanation / Answer

Operating Income

1200000

Inventory Writedown

150000

Income Before Tax

1050000

Income Tax Expense

300000

Income from Continuing Operations

750000

Discontinued Operations :

Gain from disposal of operating segment, net of tax

225000

Net Income

975000