Can some help am stuck on this question<\/p>
Problem 4-3<\/p>
Windsor Inc. reported income from continuing operations before taxes during 2017 of $793,700. Additional transactions occurring in 2017 but not considered in the $793,700 are as follows.<\/p>
| 1.<\/p> <\/td> | The corporation experienced an uninsured flood loss in the amount of $91,900 during the year.<\/p> <\/td> <\/tr> |
| 2.<\/p> <\/td> | At the beginning of 2015, the corporation purchased a machine for $70,200 (salvage value of $11,700) 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.<\/p> <\/td> <\/tr> |
| 3.<\/p> <\/td> | Sale of securities held as a part of its portfolio resulted in a loss of $60,900 (pretax).<\/p> <\/td> <\/tr> |
| 4.<\/p> <\/td> | When its president died, the corporation realized $142,600 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $46,110 (the gain is nontaxable).<\/p> <\/td> <\/tr> |
| 5.<\/p> <\/td> | The corporation disposed of its recreational division at a loss of $103,520 before taxes. Assume that this transaction meets the criteria for discontinued operations.<\/p> <\/td> <\/tr> |
| 6.<\/p> <\/td> | The corporation decided to change its method of inventory pricing from average-cost to the FIFO method. The effect of this change on prior years is to increase 2015 income by $54,040 and decrease 2016 income by $19,040 before taxes. The FIFO method has been used for 2017. The tax rate on these items is 40%.<\/p> <\/td> <\/tr> <\/tbody><\/table> Prepare an income statement for the year 2017 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of the income statement. Common shares outstanding for the year are 111,840 shares. (Assume a tax rate of 30% on all items, unless indicated otherwise.)<\/p>", "transcribed_text": "", "related_book": { "title": "Cost Management Measuring Monitoring And Motivating Performance", "isbn": "1118168879, 9781118168875", "edition": "2nd Canadian Edition", "authors": "Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/635f99b5717e0_1157.jpg", "uri": "\/textbooks\/cost-management-measuring-monitoring-and-motivating-performance-2nd-canadian-edition-1157", "see_more_uri": "" }, "free_related_book": { "isbn": "0120085259", "uri": "\/textbooks\/advances-in-chemical-engineering-volume-25-1st-edition-9780120085255-9780080565729", "name": "Advances In Chemical Engineering Volume 25", "edition": "1st Edition" }, "question_posted": "2024-06-29 01:37:47", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/an-object-0600cm-tall-is-placed-165cm-to-the-left", "description": "An object 0.600cm tall is placed 16.5cm to the left of the vertex of a concave spherical mirror having a radius of curvature of 22.0cm. (a) Draw a principal-ray diagram showing the formation of the...", "stars": 3 }, { "url": "\/study-help\/psychology\/gender-and-communication-use-an-internet-search-engine-to-research-1982500", "description": "Gender and Communication Use an Internet search engine to research gender differences in communication. In what ways do women and men communicate differently? Why? What specific strategies can men...", "stars": 3 }, { "url": "\/why-must-firms-have-reliable-suppliers-when-using-justintime-methods", "description": "Why must firms have reliable suppliers when using just-in-time methods?", "stars": 3 }, { "url": "\/study-help\/questions\/paulo-has-configured-multifactor-authentication-on-his-aws-account-using-9854608", "description": "Paulo has configured multifactor authentication on his AWS account using a virtual MFA application on his phone. When he signs into his account on a computer in his school s computer lab, he is...", "stars": 3 }, { "url": "\/study-help\/questions\/you-have-been-employed-for-the-past-5-years-by-3429343", "description": "You have been employed for the past 5 years by the same company. Being a valuable employee, you have been one of the top performers in your department and have no disciplinary actions against you....", "stars": 3 }, { "url": "\/study-help\/questions\/your-perspective-on-effective-leadership-likely-impacts-your-opinion-regarding-1004630", "description": "Your perspective on effective leadership likely impacts your opinion regarding organizational leaders. Within your organization, identify an effective leader and detail what makes them a great...", "stars": 3 }, { "url": "\/study-help\/questions\/the-earths-core-is-a-very-valuable-source-of-3219382", "description": "The Earth's core is ____ a very valuable source of energy, but scientists have only begun to determine how to harness its extreme heat, which may be 10,800 degrees Fahrenheitabout the same...", "stars": 3 }, { "url": "\/study-help\/questions\/which-of-the-following-is-a-true-statement-about-the-5702340", "description": "7) Which of the following is a true statement about the Product Support Strategy Process Model? [Identify long term supportability and sustainment strategies through the application of the Product...", "stars": 3 }, { "url": "\/study-help\/questions\/the-weights-of-5-squash-in-pounds-are-1017175185-and-1397861", "description": "The weights of 5 squash (in pounds) are 10,17,17.5,18.5, and 19.5. The sample weights have a mean of = 16.5. The accepted population standard deviation for this type of squash is = 1.25. 1) What is...", "stars": 3 }, { "url": "\/study-help\/questions\/22-the-ministry-of-works-and-transport-approaches-you-and-1005121", "description": "2.2 The Ministry of Works and Transport approaches you and wants your professional advice regarding the Memorandum of Understanding on the Development and Management of the TransKalahari Corridor....", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/harry-who-weights-320n-and-gretchen-who-weighs-200n-are-4440916", "next": "\/study-help\/questions\/mikaenterprises-has-the-following-information-available-regarding-costs-at-various-4440918" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Can some help am stuck on this question Problem 4-3 Windsor Inc.", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/can-some-help-am-stuck-on-this-question-problem-43-4440917" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }: "1" } } |