Question
Problem 13-6A Presenting items in an income statement LO4 The following table shows the balances from various accounts in the adjusted trial balance for
Problem 13-6A Presenting items in an income statement LO4 The following table shows the balances from various accounts in the adjusted trial balance for UniLink Telecom Corp. as of December 31, 2020: a. Interest income b. Depreciation expense, equipment Debit Credit 28,900 Loss on sale of office equipment 86,600 d. Accounts payable 59,500 e. Other operating expenses 100,900 234,200 f. Accumulated depreciation, equipment 177,400 B- Gain from settling a lawsuit 101,000 h. Cumulative effect of change in accounting principle (pre-tax) 1. Accumulated depreciation, buildings 151,350 393,400 3. Loss from operating a discontinued operation (pre-tax). 46,900 k. Gain on expropriation of land and building by government 68,500 1. Sales 2,334,200 m. Depreciation expense, buildings 129,700 n. 0. P. Correction of overstatement of prior year's sales (pre-tax)) Gain on sale of discontinued operation's assets (pre-tax) Loss from settling a lawsuit 6,100 79,300 57,700 Income taxes expense r. Cost of goods sold 1,172,000 4 Required: 1. Assuming that the company's income tax rate is 20%, what are the tax effects and after-tax measures of the items labelled as pre- tax? (Negative answers should be indicated by a minus sign.) 20% After-Tax Pre-tax Tax Effect Measure Cumulative effect of change in accounting principle
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