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Sparky, Inc. is preparing its 2017 financial statements. The company's accountant calculated Income from Continuing Operations to be $600,000, but upon further review is not
Sparky, Inc. is preparing its 2017 financial statements. The company's accountant calculated Income from Continuing Operations to be $600,000, but upon further review is not certain this number is accurate. Sparky has a corporate income tax rate of 40%. Additionally, the company reports only one year of financial data on the face of the financial statements. All amounts listed are pretax unless otherwise noted. After reviewing the following information, determine the appropriate adjustments, if any, to Income from Continuing Operations. Once you have determined the CORRECT Income from Continuing Operations, complete the remainder of the Income Statement for any Irregular ltems and EPS disclosures 1. On January 1, 2014, Sparky purchased a machine for $80,000 with a salvage value of $20,000 and useful life of eight years which was depreciated using the straight-line method. During 2017, Sparky decided to change to double-declining-balance method. The $600,000 Income from Continuing Operations had already been calculated using the straight-line depreciation methoo Determine the correct ADJUSTMENT to Income from Continuing Operations (ICO) for Depreciation Expense in 2017. If you need to increase ICO, enter your answer as a positive number; if you need to decrease ICO, enter your answer as a negative number using () parenthesis. If you determine that Depreciation Expense for 2017 was calculated correctly and therefore does not require an adjustment to ICO, enter NE. Adjustment for Depreciation Expense (2017): $Blank_1]
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