Income Statement Sections During the current year, Dale Corporation incurred an

Question

Income Statement Sections During the current year, Dale Corporation incurred an extraordinary tornado loss of $330,000 and sold a segment of its business at a gain of $199,000. Until it was sold, the segment had a current period operating loss of $78,000. Also, the company discovered that an error caused last year's ending inventory to be understated by $34,000 (a material amount). The company had $830,000 income from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $830,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 40 percent income tax rate. Disregard earnings per share disclosures. Finish a Income from Continuing Operations Discontinued Operations Loss from operations of discontinued segment s Gain on disposal of discontinued segment o x Income before Extraodinary itenm o x Extraordinary Itern Tornado Loss Net Income Check You have correctly selected 0 ertially corredt or this su 36/2.00

Explanation / Answer

Income from continuing operations $830,000 Discountinued Operations loss from operations of discountinued (78000*60%) -46800 Gain on disposal of discontinued segment (199000*60%) 119400 72600 Income before extraordinary items $902,600 Extraordinary items Tornado loss (78000*60%) -46800 net Income $855,800 If any doubt please comment If negative sign is to be removed in answer than please remove it and than enter

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