In this simulation, you are asked to compute various income amounts. Assume a tax rate of 30% and 100,000 shares of common stock outstanding during the year. Prepare responses to allparts.

Transcribed Image Text:

KWW Professlonal Simulation Income Statement Time Romaining 3 hours 30 minutos Unsplit Split Horiz Split Vertical Spresdsheet Calodator Exit Situation Eaplanation Measuremana Resources Directions Jude Law Corporation provides you with the following pretax information for the perlod. $3.200,000 1,920.000 10,000 40,000 340.000 Sales revenue Cost of goods sold Interest revenue Loss from abandonment of plant assets Selling expenses Administrative expenses Cumulative effect on prior years of change from FIFO to average cost for inventory costing purposes Loss from earthquake Gain on disposal of a component of Jude Law Corporation's business 280,000 50,000 40,000 90,000 Situation Esplanation Measurament Resources Directions Explain the proper accounting treatment for loss on abandonment of plant assets, gain on disposal of a component of a business, and change in Inventory costing methods. Situotion Explanation Meesurement Reaources Directions Compute the following five Items. (a) Gross profit. (b) Income from continuing operations before income tax, (c) Income from continuing operations, (d) Net income. (e) Earnings per share.