Exercise 13-1 Your answer is partially correct. Try again. Utech Company has inc
ID: 2463951 • Letter: E
Question
Exercise 13-1 Your answer is partially correct. Try again. Utech Company has income before irregular items of $310,000 for the year ended December 31, 2014. It also has the following items (before considering income taxes): (1) an extraordinary fire loss of $60,000 and (2) a gain of $30,000 from the disposal of a division. Assume all items are subject to income taxes at a 30% tax rate Prepare Utech Company's income statement for 2014, beginning with "Income before irregular items. UTECH COMPANY Partial Income Statement For the Year Ended December 31, 2014 Income before Irregular Items 310000 Extraordinary Itenm Fire Loss -42000 Discontinued Operations Gain from Disposal of Division 21000 Net Income/(Loss) 289000 LINK TO TEXTExplanation / Answer
Partial Income Statement
For the Year Ended December 31,2010
Particulars
Amount
Amount
Income before irregular items
310,000
Income Taxes
(93,000)
Income from continuing operations
217,000
Dicontinued operations
Gain from disposal of division
30,000
income tax gain
(9,000)
Gain from disposal of division
21,000
Extraordinary item
Fire Loss
(60,000)
income tax benefit from loss
18,000
Extraordinary loss net of tax
(42,000)
Net income/(Loss)
196,000
Partial Income Statement
For the Year Ended December 31,2010
Particulars
Amount
Amount
Income before irregular items
310,000
Income Taxes
(93,000)
Income from continuing operations
217,000
Dicontinued operations
Gain from disposal of division
30,000
income tax gain
(9,000)
Gain from disposal of division
21,000
Extraordinary item
Fire Loss
(60,000)
income tax benefit from loss
18,000
Extraordinary loss net of tax
(42,000)
Net income/(Loss)
196,000
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