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Maher Inc. reported income from continuing operations before taxes during 2 0 2 0 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
Instructions:
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.
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