Question
Andrews Corp.s $190,000 net income for the quarter ended September 30, Year 6, included the following after-tax items: A $120,000 gain on disposal of a
Andrews Corp.s $190,000 net income for the quarter ended September 30, Year 6, included the following after-tax items:
A $120,000 gain on disposal of a material operating segment, realized on April 30, Year 6, was allocated equally to the second, third, and fourth quarters of Year 6.
A $32,000 loss (a period-specific effect of a change in accounting principle during the quarter) was recognized on September 30, Year 6. While the cumulative effect of the change at July 1, Year 6, could be determined, it was not practicable to determine the period-specific effects of the change on first and second quarter net income of Year 6.
In addition, Andrews paid $96,000 on February 1, Year 6, for Year 6 calendar-year property taxes. Of this amount, $24,000 was allocated to the third quarter of Year 6. For the quarter ended September 30, Year 6, Andrews should report net income of?
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