BE18-14. An inexperienced accountant for Nerys Corporation showed the following in the income statement: income before income taxes and extraordinary item $400,000, and extraordinary loss from flood (before taxes) $70,000. The extraordinary loss and taxable income are both subject to a 30% tax rate. Prepare a correct income statement. Income before Income Taxes Income Tax Expense Income from Continuing Operations Discontinued Operations Income from operations of platics division, net of $##,000 income tax Gain from disposal of platics division, net of $###,000 income tax Income before extraordinary items Extraordinary Item Tornado Loss net of $21,000 income tax saving Net Income (or Net Loss) BE18-14. An inexperienced accountant for Nerys Corporation showed the following in the income statement: income before income taxes and extraordinary item $400,000, and extraordinary loss from flood (before taxes) $70,000. The extraordinary loss and taxable income are both subject to a 30% tax rate. Prepare a correct income statement. Income before Income Taxes Income Tax Expense Income from Continuing Operations Discontinued Operations Income from operations of platics division, net of $##,000 income tax Gain from disposal of platics division, net of $###,000 income tax Income before extraordinary items Extraordinary Item Tornado Loss net of $21,000 income tax saving Net Income (or Net Loss)