Question
Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2014. Cash $50,000 Administrative expenses 100,000 Selling expenses 80,000 Net sales 540,000
Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2014.
Cash $50,000
Administrative expenses 100,000
Selling expenses 80,000
Net sales 540,000
Cost of goods sold 210,000
Cash dividends declared (2014) 20,000
Cash dividends paid (2014) 15,000
Discontinued operations (loss before income taxes) 40,000
Depreciation expense, not recorded in 2013 30,000
Retained earnings, December 31, 2013 90,000
Effective tax rate 30%
(a)Compute net income for 2014.
(b) Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 10,000 shares of common stock were outstanding during 2014.
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