Utech Company has income before irregular items of $310,000 for the year ended December 31, 2014. It also has the following items (before considering income taxes):

(1) an extraordinary fire loss of $60,000 and (2) a gain of $30,000 from the disposal of a division. Assume all items are subject to income taxes at a 30% tax rate.

Instructions Prepare Utech Company’s income statement for 2014, beginning with “Income before irregular items.”

AppendixLO1