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Prepare the bottom portion of Sheridan's 2021 income statement, beginning with Income from continuing operations before income taxes (Enter negative amounts using either a negative
Prepare the bottom portion of Sheridan's 2021 income statement, beginning with "Income from continuing operations before income taxes" (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Sheridan Corporation Income Statement (Partial) $ v: $ The following information has been obtained for Sheridan Corporation. 1. Prior to 2020, taxable income and pretax financial income were identical. 2. Pretax financial income is $1,634,000 in 2020 and $1,359,000 in 2021. 3. On January 1, 2020, equipment costing $1,260,000 is purchased. It is to be depreciated on a straight-line basis over 5 years for tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purposes, as discussed in Appendix 11A.) 4. Interest of $57,000 was earned on tax-exempt municipal obligations in 2021. 5. Included in 2021 pretax financial income is a gain on discontinued operations of $195,000, which is fully taxable. 6. The tax rate is 20% for all periods. 7. Taxable income is expected in all future years
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