Northport The Northport 31,2016. Company had prepared the following tentative income statement for the year ended December Northport Company Income Statement For the year ended December 31, 2016 2,200,000 Salcs Cost of Goods Sold Gross Profit Selling and General Expenses Loss on Earthquake Gain on equipment Interest Expense Net Income before taxes Income taxes at 30% Net Income The following information becomes available to you before the 2016 statements are issuod. 1200,000 670,000 1000,000 20,000 860,000 200,000 (30,000) 140,000 98,000 s for the segment are included in the above income statement Resalts for the discontinued segment were as follows Jan. 1-June 30, 2016 July 1-Dec 31, 2016 Sales Cost of goods sold Selling and general expenses 260,000 120,000 120,000 120,000 100,000 50,000 2. There will continue to be some operations in the first two months of 2017. It is predicted that the operating 3. Late in 2016, equipment used by this segment with a book value of $130,000 was sold for $160,000. The loss will be $15,000 gain is reflected in the above income statement. Remaining equipment used by this segment has a book value of $80,000 and it is anticipated that it will sell for a net price of $62,000. 4. You might think the earthquake loss is extraordinary, but it is no longer shown net of tax. It is just "other" 5. The inventory balance on Dec. 31,2015 (end of prior year) was discovered to be overstated by $5,000. All 6. Interest expense applicable to financing of inventory of $10,000 is included in Selling and General 7. Retained eamings on Dec. 31, 2015 was $340,000. Dividends paid during 2016 were $20,000 A. Prepare in good form, a corrected multiple step income statement for 2016 (lgnore information in part C) inventory involved pertained to continuing operations Expenses a statement of retained earmings for December 31.2016 ignore infomation in Part C B. during 2017 the discontinuance of the women's accessories division was completed with the following results. Cash for sale of equipment with original book value of $80,000 was $$6,000 Operations, sales $20,000, cost of goods sold S17,000, expenses $15,000 Usingthis informatonpropar n good fonm the discontinued operations section of the 2017 Income Statement-again assuming a 30% tax rate. Northport The Northport 31,2016. Company had prepared the following tentative income statement for the year ended December Northport Company Income Statement For the year ended December 31, 2016 2,200,000 Salcs Cost of Goods Sold Gross Profit Selling and General Expenses Loss on Earthquake Gain on equipment Interest Expense Net Income before taxes Income taxes at 30% Net Income The following information becomes available to you before the 2016 statements are issuod. 1200,000 670,000 1000,000 20,000 860,000 200,000 (30,000) 140,000 98,000 s for the segment are included in the above income statement Resalts for the discontinued segment were as follows Jan. 1-June 30, 2016 July 1-Dec 31, 2016 Sales Cost of goods sold Selling and general expenses 260,000 120,000 120,000 120,000 100,000 50,000 2. There will continue to be some operations in the first two months of 2017. It is predicted that the operating 3. Late in 2016, equipment used by this segment with a book value of $130,000 was sold for $160,000. The loss will be $15,000 gain is reflected in the above income statement. Remaining equipment used by this segment has a book value of $80,000 and it is anticipated that it will sell for a net price of $62,000. 4. You might think the earthquake loss is extraordinary, but it is no longer shown net of tax. It is just "other" 5. The inventory balance on Dec. 31,2015 (end of prior year) was discovered to be overstated by $5,000. All 6. Interest expense applicable to financing of inventory of $10,000 is included in Selling and General 7. Retained eamings on Dec. 31, 2015 was $340,000. Dividends paid during 2016 were $20,000 A. Prepare in good form, a corrected multiple step income statement for 2016 (lgnore information in part C) inventory involved pertained to continuing operations Expenses a statement of retained earmings for December 31.2016 ignore infomation in Part C B. during 2017 the discontinuance of the women's accessories division was completed with the following results. Cash for sale of equipment with original book value of $80,000 was $$6,000 Operations, sales $20,000, cost of goods sold S17,000, expenses $15,000 Usingthis informatonpropar n good fonm the discontinued operations section of the 2017 Income Statement-again assuming a 30% tax rate