Annotations Ac P 4-12 The income statement of Jones Company for the year ended December 31, 2012, follows. Revenue from sales $790,000 Cost of products sold Gross profit Operating expenses: 410,000 380,000 Selling expenses General expenses $ 40,000 80,000 120,000 Operating income 260,000 Equity in earnings of nonconsolidated subsidiaries (loss) (20,000) Operating income before income taxes 240,000 Taxes related to operations (94,000) Net income from operations 146,000 Discontinued operations: Loss from operations of discontinued segment (less applicable income tax credit of $30,000) $(70,000) Loss on disposal of segment (less applicable income tax credit of $50,000) (100,000) (170,000) Income before cumulative effect of change in accounting principle (24,000) Cumulative effect of change in accounting principle (less applicable income taxes of $25,000) 50,000 $ 26,000 Net income Required a. Compute the net earnings remaining after removing nonrecurring items. b. Determine the earnings (loss) from the nonconsolidated subsidiary. c. Determine the total tax amount.