Please help with this question and provide steps as well. For the year ending December 31, 2016,
Question:
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Please help with this question and provide steps as well.
For the year ending December 31, 2016, Micron Corporation had income from continuing operations before taxes of $1,250,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. |
1. | In November 2016, Micron sold its Waffle House restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2016. The income from operations of the chain from January 1, 2016, through November was $165,000 and the loss on sale of the chain?s assets was $310,000. |
2. | In 2016, Micron sold one of its six factories for $1,300,000. At the time of the sale, the factory had a carrying value of $1,150,000. The factory was not considered a component of the entity. |
3. | In 2014, Micron?s accountant omitted the annual adjustment for patent amortization expense of $125,000. The error was not discovered until December 2016. |
Required: |
Prepare Micron?s income statement, beginning with income from continuing operations before taxes, for the year ended December 31, 2016. Assume an income tax rate of 20%. Ignore EPS disclosures.(Amounts to be deducted should be indicated with a minus sign.) |
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