Question
The following are partial income statement account balances taken from the December 31, 2016, year-end trial balance of White and Sons, Inc.: restructuring costs, $480,000;
The following are partial income statement account balances taken from the December 31, 2016, year-end trial balance of White and Sons, Inc.: restructuring costs, $480,000; interest revenue, $58,000; before-tax loss on discontinued operations, $580,000; and loss on sale of investments, $68,000. Income tax expense has not yet been recorded. The income tax rate is 40%.
Prepare the lower portion of the 2016 income statement beginning with $940,000 income from continuing operations before income taxes. Include appropriate basic EPS disclosures. The company had 120,000 shares of common stock outstanding throughout the year Partial Income Statement Reads: Income From Continuing Operations before Income Taxes 940,000 Interest Expense (376,000) Income From Continuing Operations 564,000 Loss On Discontinued Operations ???? I need help calculating the discontinued operations I orginally thought it was computed by adding the loss on discontinued operations 580,000 and the loss on sale of investments 68,000 to get (648,000) and then you multiply (648,000) by the tax rate of .40 259,200. Then I added the two numbers because there would be a tax benefit. so I end up with (388,800). But I end up getting the wrong answer. What am I doing wrong ? |
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