Question
baxter corporation realized total revenues of 15000 and total pre-tax expenses of 17000 for the current report year. 15% of those revenues and 20% of
baxter corporation realized total revenues of 15000 and total pre-tax expenses of 17000 for the current report year. 15% of those revenues and 20% of the costs were attributed to a unit that Baxter Corporation has decided to discontinue, and which qualifies for treatment as discontinued operations. furthermore, in evaluating the potential sale of the assets in the unit being discontinued, baxter expects to realize a pre-tax gain on the sale of those assets (classified as "held for sale") of $500. assume a tax rate of 35%. present baxter's income statement, being sure to detail the following: revenues, expenses, income from continuing operations before tax, income tax expense, and effect of discontinued operations, and net income as well as EPS. baxter has 10,000 common shares outstanding.
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