The following are partial income statement account balances taken from the Decem

Question

The following are partial income statement account balances taken from the December 31, 2016, year-end trial balance of White and Sons, Inc.: restructuring costs, $460,000; interest revenue, $56,000; before-tax loss on discontinued operations, $560,000; and loss on sale of investments, $66,000. Income tax expense has not yet been recorded. The income tax rate is 40%. Prepare the lower portion of the 2016 income statement beginning with $930,000 income from continuing operations before income taxes. Include appropriate basic EPS disclosures. The company had 100,000 s of common stock outstanding throughout the year. (Amounts to be deducted should be indicated with a minus sign. Round "EPS" answers to 2 decimal places.) WHITE AND SONS, INC. Partial Income Statement For the Year Ended December 31, 2016 Income from continuing operations before income taxes930,000 tax expense (372,000) Income from continuing operations Loss on discontinued operations 558,000 (186.000) $ 372,000 income Eamings per share: Income from continuing operations Loss on discontinued operations Net income 2.50 3.01 1.70

Explanation / Answer

WHITE AND SONS INC Partial income statement For the year ended December 31, 2016 Income from continuing operations before income tax $   930,000 Less: Income tax @40% $   372,000 Income from continuing operations $   558,000 Discontinued operations Loss on discontinued operations (net of tax) ($560,000*60%) $ (336,000) Net income $   222,000 Earning per share Income from continuing operations ($558,000/100,000) $          5.58 Discontinued operations, net of tax ($336,000/100,000) $        (3.36) Net income ($222,000/100,000) $          2.22

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