Ex. 209
For its fiscal year ending October 31, 2011, Conrad Corporation reported the following partial data
Income before income taxes$900,000
Income tax expense (30% x 650,000)195,000
Income before extraordinary items705,000
Extraordinary loss from flood250,000
Net income455,000
The flood loss is considered an extraordinary item. The income tax rate is 30% on all items.
Instructions
Prepare a correct income statement, beginning with income before income taxes.
Ex. 210
Gumble Corporation had income from continuing operations of $300,000 for the year ended December 31, 2011. It also had the following items (before income taxes):
1.Extraordinary flood loss of $120,000.
2.Loss of $50,000 on discontinuance of a division.
All items are subject to income taxes at a 30% tax rate.
Instructions
Prepare a partial income statement, beginning with income from continuing operations.
Ex. 211
Winfrey Corporation gathered the following information for the fiscal year ended December 31, 2011:
Sales$1,300,000
Extraordinary fire loss110,000
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.