Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Swifty Corp. has 149,190 shares of common stock outstanding. In 2025, the company reports income from continuing operations before income tax of $1,211,100. Additional transactions

image text in transcribed
image text in transcribed
image text in transcribed
Swifty Corp. has 149,190 shares of common stock outstanding. In 2025, the company reports income from continuing operations before income tax of $1,211,100. Additional transactions not considered in the $1,211,100 are as follows. 1. In 2025, Swifty Corp. sold equipment for $37,400. The machine had originally cost $84,500 and had accumulated depreciation of $32,900. The gain or loss is considered non-recurring. 2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,800 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $91,700 before taxes; the loss from disposal of the subsidiary was $99,100 before taxes. 3. An internal audit discovered that amortization of intangible assets was understated by $35,800 (net of tax) in a prior period. The amount was charged against retained earnings. 4. The company recorded a non-recurring gain of $127,200 on the condemnation of some of its property (includetd in the $1,211,100) Analyze the above information and prepare an income statement for the year 2025, starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 19% on all items, unless otherwise indicated) (Round earnings per share to 2 decimal places, e.g. 1,47.) SWIFTY CORP. Income Statement (Partial) For the Year Ended December 31, 2025 Income from Continuing Operations $1196900 Income Tax \( \frac{227411}{\hline 969489} \) Discontinued Operations Loss from Operations of Discontinued Subsidiary : $ 74277 Loss from Disposal of Subsidiary Net Income / (Loss) Earnings per Share Income from Continuing Operations $ 6.5 Loss on Disposal of Discontinued Operations Income from Continuing Operations $1196900 Income Tax Discontinued Operations Loss from Operations of Discontinued Subsidiary $4277 Loss from Disposal of Subsidiary Net income/ (Loss) Earnings per Share Incomefrom Continuing Operations $ Loss on Dispossal of Discontinued Operations Loss from Operations of Discontinued Subsidiary * Net income / (Loss) $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Audit Document Control System Based On ISO 9001 2015

Authors: Folarin Omojoye

1st Edition

B09892NF88, 979-8525615175

More Books

Students also viewed these Accounting questions

Question

What is meant by 'Wealth Maximization ' ?

Answered: 1 week ago