Required information Problem 17-6AA Income statement computations and format LO A2 [The following information applies to the questions displayed below.] Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31, 2017, follow. Debit Credit Interest revenue S 14,600 a . b. Depreciation expense-Equipment c. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment q. Gain from settlement of lawsuit h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segment (pretax) j. Gain on insurance recovery of tornado damage 34,600 26,450 44,600 107,000 72,200 44,600 175,700 18,850 29,720 k. Net sales 1,004,500 1. Depreciation expense-Buildings m. Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segment's assets (pretax 52,600 16,600 37,000 o. Loss from settlement of lawsuit 24,350 p. Income taxes expense 488,500 q. Cost of goods sold Problem 17-6 Part 1 Required: 1. Assume that the company's income tax rate is 30% for all items. Compute the tax effects and after-tax amounts of the three items labeled pretax. Pretax 30% Tax Effect After-Tax Loss from operating a discontinued segment Correction of overstatement of prior year's sales Gain on sale of discontinued segment's assets Problem 17-6 Part 2 2a. What is the amount of income from continuing operations before income taxes? 2b. What is the amount of the income taxes expense? 2c. What is the amount of income from continuing operations? Complete this question by entering your answers in the tabs below. Req 2B Req 2A Req 2C What is the amount of income from continuing operations before income taxes? Income from continuing operations before taxes Req 2B Req 2C Req 2A What is the amount of the income taxes expense? Income taxes expense www mLL Req 2A Req 2B Req 2C What is the amount of income from continuing operations? Income from continuing operations after taxes Problem 17-6 Part 3 3. What is the total amount of after-tax income (loss) associated with the discontinued segment? After-tax income from discontinued segment Problem 17-6 Part 4 4. What is the amount of net income for the year? Net income