Which of the following items would be included in the discontinued operations section of the income statement?

A. The gain or loss on disposal of the segment.

B. Both the income or loss from operating the segment prior to its disposal, and the gain or loss on disposal of the segment.

C. Income or loss from operating the segment prior to its disposal.

D. Only losses and not gains on the disposal of a segment.

2.

All things being equal, if investors expect earnings to increase substantially from current levels, the price to earnings ratio will:

Multiple Choice

A.Be quite low.

B. Be quite high.

C. Not change.

D. Not be affected by income expectations.

3. Corona Corporation's financial statements for the current year include the following:

Income from continuing operations	$	818,400
Income tax expense	$	125,000
Prior period adjustment (increase in prior year net income, net of taxes)	$	250,800
Cash dividends paid to preferred stockholders	$	266,640
Gain from discontinued operations (net of taxes)	$	541,200
Non-recurring loss	$	125,400

On the basis of this information, net income for the current year is:

Multiple Choice

A. $693,400

B. $1,234,600

C. $1,360,000

D. $1,108,800