Wade Corp. has 150,000 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in the $1,210,000 are as 1. In 2017, Wade Corp. sold equipment for $40,000. The machine had originally cost $80,000 and had accumulated depreciation of $30,000. 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 $190,000 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $90,000 before taxes; the loss from disposal of the subsidiary was $100,000 before taxes 3. An internal audit discovered that amortization of intangible assets was understated by $35,000 (net of tax) in a prior period. The amount was charged against retained earnings. 4 The company had a non-recurring gain of $125,000 on the condemnation of some of its property (included in the $1,210,000). Analyze the above information and prepare an income statement for the year 2017, 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 38% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, eg. 1.47.) WADE CORP Income Statement (Partial) For the Year Ended December 31, 2017 Income From Continuing Operations Before Income Tax 1200000 Income Tax Expense 456000 Income From Continuing Operations 744000 Discontinued Operations Loss from Operations of Discontinued Subsidiary 90000 Less 1.1 Applicable Income Tax Reduction 34200 55800 Loss from Disposal of Subsidiary 100000 Less 1.1 Applicable Income Tax Reduction 38000 62000 117800 Income From Continuing Operations 626200 Discontinued Operations, Net of Tax Loss from Disposal of Subsidiary 1200000 Gain on Condemnation 77500 Net Income/(Loss) 703700