Problem Solving

Vincent Corporation had income from continuing operations of P800,000 (after taxes) in 2019. In addition, the following information, which has not been considered, is as follows.

In 2019, Vincent experienced an uninsured earthquake loss in the amount of P200,000.

A machine was sold for P140,000 cash during the year at a time when its book value was P110,000. (Depreciation has been properly recorded.) The company often sells machinery of this type.

Vincent decided to discontinue its stereo division in 2019. During the current year, the loss on this component's disposal was P150,000 less applicable taxes.

Required:

Prepare in good form the income statement of Vincent Corporation for 2019 starting with "income from continuing operations." Assume that Vincent's tax rate is 30% and 200,000 shares of common stock were outstanding during the year.