The income statement of Jones Company for the year ended December 31, 2000 is shown at the top of the next page.

Required a.Compute the net earnings remaining after removing nonrecurring items.

b.Determine the earnings (loss) from the nonconsolidated subsidiary.

c.Determine the total tax amount.

Revenue from sales $790,000 Cost of products sold 410,000 Gross profit 380,000 Operating expenses:
Selling expenses $ 40,000 General expenses 80,000 120,000 Operating income 260,000 Equity in earnings of non-consolidated subsidiaries (loss) (20,000)
Operating income before income taxes 240,000 Taxes related to operations (94,000)
Net income from operations 146,000 Discontinued operations:
Loss from operations of discontinued segment (less applicable income tax credit of $30,000) $ (70,000)
Loss on disposal of segment (less applicable income tax credit of $50,000) (100,000) (170,000)
Income before cumulative effect of change in accounting principle (24,000)
Cumulative effect of change in accounting principle (less applicable income taxes of $25,000) 50,000 Net income $ 26,000