FA12

Income Statement Sections

During the current year, Dale Corporation sold a segment of its business at a gain of $315,000. Until it was sold, the segment had a current period operating loss of $112,500. The company had $1,275,000 from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $1,275,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 20% income tax rate. Disregard earnings per share disclosures. (Round all calculations to nearest dollar amount.)

Dale Corporation
Partial Income Statement
Current Year
Income from continuing operations		Answer
Discontinued operations
Loss from operations of discontinued segment (net of tax)	Answer
Gain on disposal of discontinued segment (net of tax)	Answer	Answer
Net income		Answer