Question
Logan Corp.'s trial balance of income statement accounts for the year ended December 31, 2011 included the following: Sales $140,000 Cost of sales $ 50,000
Logan Corp.'s trial balance of income statement accounts for the year ended December 31, 2011 included the following:
Sales $140,000 Cost of sales $ 50,000 Administrative expenses 25,000 Loss on sale of equipment 9,000 Commissions to salespersons 8,000 Interest revenue 5,000 Freight-out 3,000 Loss on disposition of wholesale division 12,000
Bad debt expense 3,000
Other information:
Logan's income tax rate is 30%. Finished goods inventory:
January 1, 2011 $80,000
December 31, 2011 70,000
On Logan's income statement for 2011, income from continuing operations is
| a. | $35,000 | |
| b. | $64,000 | |
| c. | $47,000 | |
| d. | $24,500 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cost Accounting A Managerial Emphasis
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
6th Canadian edition
978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883
