Maher Inc. reported income from continuing operations before taxes during 2020 of $790,000. Additional transactions occurring in 2020 but not used in computing the $790,000 are as follows. > Sale of securities held as a part of its portfolio resulted in a loss of $57,000 (pretax). > When its president died, the corporation realized $150,000 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $46,000. The gain is nontaxable. > The corporation experienced an uninsured flood loss in the amount of $90,000 during the year. > At the beginning of 2020, the corporation purchased a machine for $54,000 (salvage value of $9,000). The machine had a useful life of 6 years and is depreciated straight-line. The bookkeeper failed to deduct the salvage value in computing the depreciation base. > The corporation disposed of its recreational division at a loss of $115,000 before taxes. Assume that this transaction meets the criteria for discontinued operations. Prepare an income statement for the year 2020 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 120,000 shares. (Assume a tax rate of 30% on all items, unless indicated otherwise.) Computation of income from continuing operations before taxes: As previously stated Loss on sale of securities $ 790,000 Gain on proceeds of life insurance policy Flood loss Error in computation of 2020 depreciation: As computed Corrected As restated Computation of income tax: Income from continuing operations before taxes Nontaxable income (gain on life insurance) Taxable income Tax rate Income tax