Please explain where did they get the number for discontinued operations loss, net applecable income taxes of 87,000 .....(203,000)

520 PROBLEMS Pr. 4-113-Multiple-step income statement Presented below is information related to Farr Company Retained earnings, December 31, 2017 -Sales revenue 650,000 1,600,000 - 290,000 290,000 33,600 880,000 520,000 120,000 100,000 -Selling and administrative expenses Discontinued operations loss (pre-tax) A Cash dividends declared on common stock Cost of goods sol Gain resulting from computation error on depreciation charge in 2016 (pre-tax) -Other revenue Other expenses Instructions Prepare in good form a multiple-step income statement for the year 2018 . Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year. Ans: NA, LO: 3-5, Bloom: AP, DImiculty: Moderate, Min: 10. AACSB: Analytic, AICPA BB: None, AICPA FN: Measurement, AICPA PC: Prob. Solving. IMA: Reporting, IFRS: None Solution 4-113 Farr Company INCOME STATEMENT For the Year Ended December 31,2018 Sales revenue Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other revenue Other expenses ncome before income taxes Income taxes (450,000 x .30) Income from continuing operations Discontinued operations loss, net of applicable income taxes of $87,000 . Net income $1,600,000 880,000 720,000 290 430,000 120,000 450,000 315,000 Per share of common stock- Income from continuing operations Discontinued operations item, net of tax Net income $3.94 (315,000/80,000) (2.54) (112,000/80,000) $1.40