Income Statement

Oracle Corporation had the following balances in the income statement accounts below at the end of December 31, 2020.

	Debit	Credit
Service Revenue		$43,100
Selling Expense	$5,000
Administrative Expense	100
Depreciation Expense - Equipment	10,000
Interest Expense	1,000

Additional Information:

1. The tax rate during the year is 30%.
2. Oracle Corporation had 10,000 common stock outstanding during 2020.
3. During 2020, Oracle had an unusual and infrequent loss of $22,500 due to a Volcano Eruption.
4. During 2020, Oracle disposed of its Financial Applications division at a pre-tax loss of $12,000. Prior to disposal, the division had a pre-tax income of $10,000 in 2020 (assume that the disposal of the Financial Applications division meets the criteria for recognition as a discontinued operation)
5. Oracle Corporation uses the Multiple-Step Income Statement format.

1: What is the Income from Operations for Oracle Corporation?

a: 3,150

b: 1,750

c: 4,500

d: 28,000

2: What is the Income Tax for Oracle Corporation?

a: 4,500

b: 28,000

c: 3,150

d: 1,350

3: What is the Income From Operation of Discontinued Financial Applications division Net of Tax for Oracle Corporation?

a: 10,000

b: 7,000

c: 12,000

d: 8,400

4: What is the Net Income/(Loss) for Oracle Corporation?

a: 1,750

b: -1,750

c: 3,150

d: -3,150

5: What is the Earnings per Share for Income From Continuing Operations for Oracle Corporation?

a: -0.32

b: -0.45

c: 0.45

d: 0.32