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Maher Inc. reported Income from Continuing Operations before taxes during 2 0 2 5 of $ 7 9 0 , 0 0 0 . Additional
Maher Inc. reported Income from Continuing Operations before taxes during of $ Additional transactions occurring in
but not considered in the $ are as follows.
The corporation experienced an uninsured flood loss in the amount of $ during the year.
At the beginning of the corporation purchased a machine for $salvage value of $ that had a useful life
of years. The bookkeeper used straightline depreciation for and but failed to deduct the salvage value in
computing the depreciation base.
Sale of securities held as a part of its portfolio resulted in a loss of $pretax
When its president died, the corporation realized $ from an insurance policy. The cash surrender value of this policy
had been carried on the books as an investment in the amount of $the gain is nontaxable
The corporation disposed of its recreational division at a loss of $ before taxes. Assume that this transaction meets
the criteria for discontinued operations.
The corporation decided to change its method of inventory pricing from averagecost to the FIFO method. The effect of this
change on prior years is to increase income by $ and decrease income by $ before taxes. The FIFO
method has been used for The tax rate on these items is
Prepare an income statement for the year 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 shares.
Assume a tax rate of on all items, unless indicated otherwise.Round earnings per share to decimal places, eg and all other
answers to decimal places, eg
MAHER INC.
Income Statement Partial
For the Year Ended December
Income before Income Tax
Income Tax
Income from Continuing Operations
Discontinued Operations
Loss on Disposal of Recreational Division
Net Income Loss
$
Income from Continuing Operations
Loss on Disposal of Discontinued Operation
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