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1 2 Marigold Inc reported income from continuing operations before taxes during 2020 of $809 600. Additional transactions occurring in 2020 but not considered in

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1 2 Marigold Inc reported income from continuing operations before taxes during 2020 of $809 600. Additional transactions occurring in 2020 but not considered in the $809,600 are as follows. The corporation experienced an uninsured flood loss in the amount of $95.700 during the year. At the beginning of 2018, the corporation purchased a machine for $68,400 (salvage value of 511.000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2018, 2019 and 2020, but failed to deduct the salvage value in computing the depreciation base. 3. Sale of securities held as a part of its portfolio resulted in a loss of 563.200 (pretax). When its president died the corporation realized $161.100 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of 547.910 (the gain is nontaxable) 5. The corporation disposed of its recreational division at a loss of $121,850 before taxes. Assume that this transaction meets the criteria for discontinued operations The corporation decided to change its method of inventory pricing from average-cost to the FIFO method. The effect of this change on prior years to increase 2018 income by $55.000 and decrease 2019 income by $21.790 before taxes. The FIFO method has been used for 2020. The tax rate on these items is 30% D 4 6 Prepare an income statement for the year 2020 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of the income statement. Common shares outstanding for the year are 117030 shares (Assume a tax rate of 30% on all items unless indicated otherwise. (Round eines pershare to 2 decimal ploos, 148 and all other answers to decimal places 5275) MARIGOLD INC. Income Statement (Partial) For the Year Ended December 31, 2020 809600 Income From Continuing Operations Before Income Tax Income Tax 566720 Income From Continuing Operations Discontinued Operations Los From Deal of Recreational Civision Alicable Income Tax Reduction . Netico Question 15 of 15

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