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EXAM 2 CHAPTERS 16-17 C | ezto.mleducation.com/hm.tpx (The following information applies to the questions displayed below Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year end December 31, 2015, follow Debit Credit s 15100 a. Interest revenue b. Depreciation expense-Equipment 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 depreclation-Buildings I. Loss from operating a discontinued segment (pretax) J Gain on insurance recovery of tornado damage (pretax and extraordinary) k. Net sales L Depreclation 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 lawsult p. Income taxes expense q. Cost of goods sold $ 35,100 26,950 45,100 107,500 72.700 45,100 176.700 19,350 30,220 1,009,500 53,100 17100 24.850 493.500 39,500 2. Required 1. Assume that the company's income tax rate is 30% for all items Compute the tax effects and after-tax amounts of the four items labeled pretax. (Loss amounts should be indicated with a minus sign.) Pretax 30% Tax Effect : After-Tax Loss from operating a discontinued segment Gain on insurance recovery of tornado damage Correction of overstatement of prior year's sales Gain on sale of discontinued segment's assets