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Problem 4-7 Sage Corp. has 150,600 shares of common stock outstanding. In 2017, the company reports income from continuing operations before Income tax of $1,233,800 Additional transactions not considered in the $1,233,800 are as follows. 1. In 2017, Sage Corp. sold equipment for $37,700. The machine had originally cost $81,400 and had accumulated depreciation of $30,400. The gain or loss is 2. The company discontinued operations of one of lts subsidiaries during the current year at a loss of $191,000 before taxes. Assume that this transaction meets the 3. An internal audit discovered that amortization of intangible assets was understated by $39,300 (net of tax) in a prior period. The amount was charged aganst 4. The company had a non-recurring gain of $126,000 on the condemnation of some of its property (included in the $1,233,800). considered non-recurring. criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $93,700 before taxes; the loss from disposal of the subsidiary was $97,300 before taxes. retained earnings. 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 ace of the in (Round earnings per share to 2 decimal places, e.g. 1.47.) come statement. (Assume a total effective tax rate of 38% on all items, unless otherwise indicated.) SAGE CORP Income Statement (Partial) Income From Continuing Operations Before Income Tax Income Tax Expense Income From Continuing Operations Discontinued Operations Loss from Operations of Discontinued Subsidiary Less : Applicable Income Tax Reduction Loss from Disposal of Subsidiary Less . Applicable Income Tax Reduction Net Income (Loss) Earnings Per Share Income From Continuing Operations Discontinued Operations, Net of Tax Net Income (Loss)