SUBJECT IS ACCOUNTING

Submission file format: Excel document with all the answers, clearly identifying all steps, results, journals and including comments besides each answer.

Thank you in advance:)

Part 1: changes in retained earnings

Chester is a company dedicated to transports.

On 1st of March 2019, Chester sells its unprofitable segment, a restaurant activity.

This segment generated in 2019 a net loss of $92,000 and its assets sold at a loss of $80,000.

On 1st of May 2019, an earthquake destroyed one of Chesters offices. The company suffered a loss of $230,000.

On 31st of December 2019, the board of managers decides to change the depreciation method from straight line to 200% declining balance method for the fleet of trucks acquired the 1st of January 2016.

The effect of the change is an additional expense of $96.000 For the while year 2019 Chester reported an income from continuing operations of $1,950,000.

Applicable tax rate is 30%.

Chester had 200,000 shares of capital stock outstanding throughout the year

Question 1: Prepare a condensed income statement including proper presentation of the discontinued restaurant operations and the extraordinary loss. Include all appropriate earnings per share figures.