Ex. 206
Winfrey Corporation gathered the following information for the fiscal year ended December 31, 2014:
Sales revenue$1,400,000
Discontinued operations loss140,000
Selling and administrative expenses160,000
Cost of goods sold900,000
Loss on sale of equipment40,000
Winfrey Corporation is subject to a 30% income tax rate.
Instructions
Prepare a partial income statement, beginning with income before income taxes.
Ex. 207
Windsor Corporation had the information listed below available in preparing an income statement for the year ended December 31, 2014. All amounts are before income taxes. Assume a 30% income tax rate for all items.
Sales revenue? 600,000
Income from operation of discontinued cement division? 100,000
Loss from disposal of cement division? (60,000)
Operating expenses? 125,000
Gain on disposal of equipment? 65,000
Cost of goods sold? 360,000
Instructions
Prepare an income statement in good form which takes into account intraperiod income tax allocation. Ignore EPS computations.