Question
37. Jaguar Corp. reported the following pretax amounts for the year ending December 31, 2012: Operating income ...................................... $588,000 Gain on sale of equipment .............................
37. Jaguar Corp. reported the following pretax amounts for the year ending December 31, 2012:
Operating income ...................................... | $588,000 |
Gain on sale of equipment ............................. | 9,000 |
Interest expense ...................................... | 6,000 |
Loss from operating a discontinued business segment ... | 157,500 |
Loss from sale of business segment .................... | 225,000 |
Extraordinary gain .................................... | 120,000 |
Adjustment for inventory overstatement in 2012 ........ | 31,500 |
The income tax rate applicable to Jaguar is 30 percent. Prepare a partial income statement for the year ending December 31, 2012, beginning with "Income from continuing operations before income taxes." Include the presentation of earnings per share, assuming 50,000 shares were outstanding during the year.
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