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Skysong Inc. reported income from continuing operations before taxes during 2 0 1 7 of $ 2 , 2 0 0 , 0 0 0
Skysong Inc. reported income from continuing operations before taxes during of $ Additional transactions occurring
in but not considered in the $ are as follows.
A gain of $pretax as a result of selling securities from its investment portfolio.
A $ loss before taxes as a result of operating the discontinued clothing division during
A loss of $ before taxes as a result of disposing of its clothing division. Assume that this transaction meets the criteria
for discontinued operations.
An uninsured $ loss due to a fire.
At the beginning of the corporation purchased a machine for $salvage value of $ that had a useful life
of years. The bookkeeper used straightline depreciation for and but failed to deduct the salvage value
in computing the depreciation base.
The corporation decided to change its method of inventory pricing from averagecost to the FIFO method. The effect of this
change on prior years is to increase income by $ and decrease income by $ before taxes. The FIFO
method has been used for
Prepare an income statement for the year starting with income from continuing operations before taxes. Compute earnings per
share as it should be shown on the face of the income statement. Common shares outstanding for the year are shares.
Assume a tax rate of on all items.Round earnings per share to decimal places, eg and all other answers to
decimal places, eg
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