Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31, 2013, follow.

Required
Answer each of the following questions by providing supporting computations.
1. Assume that the company€™s income tax rate is 30% for all items. Identify the tax effects and after- tax amounts of the four items labeled pretax.
2. What is the amount of income from continuing operations before income taxes? What is the amount of the income taxes expense? What is the amount of income from continuing operations?
3. What is the total amount of after- tax income (loss) associated with the discontinued segment?
4. What is the amount of income (loss) before the extraordinary items?
5. What is the amount of net income for theyear?

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Debit Credit a. Interest revenue $ 14,000 b. Depreciation expense Equipment 34,000 44,000 71,600 44,000 174.500 g. Gain from setdement of lawsuit.. h. Accumulated depreciation Buildings i. Loss from operating a discontinued segment (pretax).. 18,250 i. Gain on insurance recovery of tornado damage (pretax and extraordinary) k. Net sales. .... 29,120 998,500 m. Correction of overstatement of prior year's sales (pretax) 16,000 n. Gain on sale of discontinued segments assets (pretax)a.. 34,000 p. Income taxes expense