Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year end December 31, 2015, follow.

Debit

Credit

a.

Interest revenue

$

14,600

b.

Depreciation expenseEquipment.

$

34,600

c.

Loss on sale of equipment

26,450

d.

Accounts payable

44,600

e.

Other operating expenses

107,000

f.

Accumulated depreciationEquipment

72,200

g.

Gain from settlement of lawsuit

44,600

h.

Accumulated depreciationBuildings

175,700

i.

Loss from operating a discontinued segment (pretax)

18,850

j.

Gain on insurance recovery of tornado damage (pretax and extraordinary)

29,720

k.

Net sales

1,004,500

l.

Depreciation expenseBuildings

52,600

m.

Correction of overstatement of prior years sales (pretax)

16,600

n.

Gain on sale of discontinued segments assets (pretax)

37,000

o.

Loss from settlement of lawsuit

24,350

p.

Income taxes expense

?

q.

Cost of goods sold

488,500

Required:

1.

Assume that the companys income tax rate is 30% for all items. Compute the tax effects and after-tax amounts of the four items labeled pretax.

	Pretax	30% Tax Effect	After-Tax
Loss from operating a discontinued segment
Gain on insurance recovery of tornado damage
Correction of overstatement of prior years sales
Gain on sale of discontinued segments assets

2.1	What is the amount of income from continuing operations before income taxes?

2.2

What is the amount of the income taxes expense?

2.3

What is the amount of income from continuing operations?

3.

What is the total amount of after-tax income (loss) associated with the discontinued segment?

4.

What is the amount of income (loss) before the extraordinary items?

5.	What is the amount of net income for the year?