Maher Inc reported income from continuing operations before taxes during 2017 of $790,000 Additional transactions occurring in 2017 but not considered in the $790,000 are as follows 1 The corporation experienced an uninsured flood loss in the amount of $90,000 during the year 2 At the beginning of 2015, the corporation purchased a machine for $54,000 (salvage value of $9,000) that had a useful life of 6 years The bookkeeper used straight line depreciation for 2015, 2016, and 2017, but failed to deduct the salvage value in computing the depreciation base 3 Sale of securities held as a part of its portfolio resulted in a loss of $57,000 (pretax) 4 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) 5 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 6 The corporation decided to change its method of inventory pricing from average cost to the FIFO method The effect of this change on prior years is to increase 2015 income by $60,000 and decrease 2016 income by $20,000 before taxes The FIFO method has been used for 2017 The tax rate on these items is 40 Prepare an income statement for the year 2017 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 ) L The corporation sxparisnced an uninaured flood less in the amount of sso ca0 during the yea 2 At the beginning of 2015, the corpora on purchased m er ne for $54,000 selvege al e of Ss,000 thst hs useful of 6 yen, Tre bookkeeper used stra ht line depreceton for 2015, 2016 and 2017 but fal ed to de t the hoge alue comput ng the deprec at n bsee 3 6 Tha corporation disposed cf its recreational div ion at a lo of $115 000 befo taxe, Aasume that this transaction meet the criteria for discorti ed operations The corporation decided t) npe its method finventory pricing from average cost to the F FO et d The effect of th Change on pricr yens 5 to creose 2015 0 re by S60,000 ang dec ease 2016 Income by $20 000 be ore t net The F FO me od has bee used or 2017 The tax ote on these items 15 40 share to 2 dudinal plecos, g 1 48 and all other answers to O decinal places, c g 5,275 )

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Maher Inc. reported income from continuing operations before taxes during 2017 of $790,000. Additional transactions occurring in 2017 but not considered in the $790,000 are

Maher Inc. reported income from continuing operations before taxes during 2017 of $790,000. Additional transactions occurring in 2017 but not considered in the $790,000 are as follows.

1.		The corporation experienced an uninsured flood loss in the amount of $90,000 during the year.
2.		At the beginning of 2015, the corporation purchased a machine for $54,000 (salvage value of $9,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2015, 2016, and 2017, but failed to deduct the salvage value in computing the depreciation base.
3.		Sale of securities held as a part of its portfolio resulted in a loss of $57,000 (pretax).
4.		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).
5.		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.
6.		The corporation decided to change its method of inventory pricing from average-cost to the FIFO method. The effect of this change on prior years is to increase 2015 income by $60,000 and decrease 2016 income by $20,000 before taxes. The FIFO method has been used for 2017. The tax rate on these items is 40%. Prepare an income statement for the year 2017 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.)

L. The corporation sxparisnced an uninaured flood less in the amount of sso.ca0 during the yea 2 At the beginning of 2015, the corpora on purchased m er ne for $54,000 selvege al e of Ss,000 thst hs useful of 6 yen, Tre bookkeeper used stra ht-line depreceton for 2015, 2016 and 2017 but fal ed to de t the hoge alue comput ng the deprec at n bsee 3. 6. Tha corporation disposed cf its recreational div ion at a lo of $115.000 befo taxe, Aasume that this transaction meet the criteria for discorti ed operations The corporation decided t) npe its method finventory pricing from average cost to the F FO et d. The effect of th Change on pricr yens 5 to creose 2015 0 re by S60,000 ang dec ease 2016 Income by $20 000 be ore t net The F FO me od has bee used or 2017. The tax ote on these items 15 40%. share to 2 dudinal plecos, g. 1.48 and all other answers to O decinal places, c.g. 5,275.)