In its draft 2010 income statement, Supply Corporation reports income before income taxes $500,000, extraordinary loss due

Question:

In its draft 2010 income statement, Supply reports income before income taxes $500,000, extraordinary loss due to earthquake $150,000, income taxes $200,000 (not including irregular items), loss on disposal of discontinued music division $20,000. The income tax rate is 40%. Prepare a correct income statement, beginning with income before income taxes.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...