15. The following amounts are from Silverton Co.\'s 2014 income statement: Sales

Question

15. The following amounts are from Silverton Co.'s 2014 income statement:

Sales ................................................. $340,000
Sales returns and allowances .......................... 5,000
Cost of goods sold .................................... 132,000
Utilities expense ..................................... 66,000
Interest revenue ...................................... 1,000
Income tax on operations .............................. 28,000
Extraordinary loss due to earthquake, net of tax ...... 5,000
Interest expense ...................................... 4,000
Salaries expense ...................................... 46,000
Loss on sale of investments ........................... 3,000

What amount would Silverton show for income from continuing operations on a multiple-step format income statement?
a. $52,000
b. $68,000
c. $57,000
d. $96,000

Explanation / Answer

340,000 - 5000 - 132000 - 66000 + 1000 - 28000 - 4000 - 46000 - 3000 =

c. $57,000

 

Notice extraordinary loss is not included because extraordinary items are not considered ordinary operations.

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