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bained earning as follows ares of common stock were outstanding the PES/1403,4,5) EXCEL GROUPONSIB6.00 med mer Related Thema) Maher the reported income from continuing besars

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bained earning as follows ares of common stock were outstanding the PES/1403,4,5) EXCEL GROUPONSIB6.00 med mer Related Thema) Maher the reported income from continuing besars before taxes during 2017 of $790,000. Additional transactions occurring in 2017 but not considered in the $790,000 are 1. The corporation experienced an uninsured flood loss in the amount of $90,000 during the year. 2. At the beginning of 2015, the corporation purchased a machine for 55.000 (salvage value of $9,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2015, 2016, and 2017, but failed to deduct the salvage value in computing the depreciation base. to NE 3. Sale of securities held as a part of its portfolio resulted in a loss of $57,000 (pretax). 4. When its president died, the corporation realized $150,000 from an insurance policy. The cash surrender value of the policy had been carried on the books as an investment in the amount of $46,000 (the gain is nontaxable). 5. The corporation disposed of its recreational division at a loss of $115,000 before taxes. Assume that this transaction mees the criteria for discontinued operations 6. The corporation decided to change its method of inventory pricing from average-cost to the FIFO method. The effect o this change on prior years is to increase 2015 income by $60,000 and decrease 2016 income by $20,000 before taxes. The FIFO method has been used for 2017. The tax rate on these items is 40% Instructions Prepare an income statement for the year 2017 starting with income from continuing operations before taxes. Compute caming per share as it should be shown on the face of the income statement. Common shares outstanding for the year are 120,000 shares (Assume a tax rate of 30% on all items, unless indicated otherwise) P4-4 (L03,4,5,6) (Multiple- and Sinric Sten Sie Instruct Determ tatemet rational P4-6 year 201

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