Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar yearend December 31, 2017, 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 three items labeled pretax.
2. Compute 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 net income for the year?

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Deblt a. Interest revenue 14,000 S 34,000 c. Loss on sale of equipment. d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segment (pretax). j. Gain on insurance recovery of tornado damage k. Net sales I. Depreciation expense-Buildings m. Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segment's assets (pretax) o. Loss from settlement of lawsuit. p. Income taxes expense q. Cost of goods sold 44.000 106,400 71,600 44.000 174,500 18,250 20,000 998,000 52,000 16,000 34.000 482,500