An inexperienced accountant for Fielder Corporation showed the following in Fielder’s 2014 income statement: Income before income taxes $300,000; Income tax expense $72,000; Extraordinary loss from flood (before taxes) $80,000; and Net income

$168,000. The extraordinary loss and taxable income are both subject to a 30% tax rate.

Prepare a corrected income statement beginning with “Income before income taxes.”

AppendixLO1