Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar yearend December 31, 2015, 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 the year?

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Debit a. Interest revenue $14,000 $34,000 25,850 c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreclation-Equipment g. Galn from settlement of lawsult h. Accumulated depreclation-Buildings I. Loss from operating a discontinued segment (pretax) I Galn on Insurance recovery of tornado damage (pretax and extraordinary) k. Net sales . Depreclation expense-Bulldings m. Correction of overstatement of prior year's sales (pretax) n. Galn on sale of discontinued segment's assets (pretax) o. Loss from settlement of lawsult p. Income taxes expense q. Cost of goods sold 44,000 . 106,400 71,600 44,000 174,500 18,250 29.120 998,500 52,000 16,000 34,000 .. 23,750 482,500