gnment> Open Assignment PRINTER VERSION BAC Exercise 4-17 (Part Level Submission

Question

gnment> Open Assignment PRINTER VERSION BAC Exercise 4-17 (Part Level Submission) The following information was taken from the records of Larkspur Inc. for the year 2017: Income tax applicable to income from continuing operations $243,338; income tax applicable to loss on discontinued operations $28,900, and unrealized holding gain on available-for-sale securities (net of tax) $24,600. Gain on sale of equipment Loss on discontinued operations Administrative expenses Rent revenue Loss on write-down of inventory $95,300 85,000 240,100 43,400 67,700 Cash dividends declared Retained earnings January 1, 2017 Cost of goods sold Selling expenses Sales Revenue $162,200 651,900 784,300 320,100 1,989,200 Shares outstanding during 2017 were 96,000. Prepare a single-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.48 LARKSPUR INC 3 .Agreement i Privacy.Policy I .2000-201uohnwiley.ASons.inc. All Rights Reserved. A Division of John Wiley &Sons. Inc. Versi

Explanation / Answer

LARKSPUR INC

INCOME STATEMENT

Note :- Tax on income from continuing operation adjusted against tax shield on loss from continuing operation. Also unrealised gain is not shown in income statement following accrual basis.

Particulars Amount Revenues and gains Sales revenue 1989200 Gain on sale of equip 95300 Rent revenue 43400   TOTAL 2127900 Expenses and losses cost of goods sold 784300 selling expense 320100 cash dividend declared 162200 loss on w/down of machine 67700 admin exp 240100 Loss on discont op 85000 TOTAL 1659400 income before tax 468500 Income tax (net) (243338-28900) 214438 INCOME AFTER TAX 254062

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