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Please Help! I am getting the ones in the red boxes wrong and I don't know what I am doing wrong. Problem 4-7 Your answer
Please Help! I am getting the ones in the red boxes wrong and I don't know what I am doing wrong.
Problem 4-7 Your answer is partially correct. Try again. Windsor Corp, has 149,080 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,217,100 Additional transactions not considered in the $1,217,100 are as follows In 2017, Windsor Corp. sold equipment for $35,600. The machine had originally cost $80,500 and had accumulated depreciation of $34,300. The gain or loss is considered non-recurring. 1. 2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $191,700 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $93,300 before taxes; the loss from disposal of the subsidiary was $98,400 before taxes 3. An internal audit discovered that amortization of Intangible assets was understated by $35,300 (net of tax) In a prior period. The amount was charged against retained earnings. 4. The company had a non-recurring gain of $128,000 on the condemnation of some of Its property (included in the $1,217,100) Analyze the above information and prepare an income statement for the year 2017, starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 38% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, e.g. 1.47.) WINDSOR CORP Income Statement (Partial) For the Year Ended December 31, 2017 1334500 Income From Continuing Operations Before Income Tax 507110 Income Tax Expense 827390 Income From Continuing Operations Discontinued Operations 93300 Loss from Operations of Discontinued Subsidiary 35454 57846 Less. Applicable Income Tax Reduction Loss from Disposal of Subsidiary 98400 37392 61008 Less. Applicable Income Tax Reduction 118854 708538 Net Income (Loss) Earnings Per Share 5.55 Income From Continuing Operations 0.80 Discontinued Operations, Net of Tax 4.75 Net Income (Loss)Step by Step Solution
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