The following items appeared in the 2018 yearend trial balan

The following items appeared in the 2018 year-end trial balance for the Brown Coffee Company: Debits Credits Revenues Operating expenses Income on discontinued operations Restructuring costs Interest expense Gain on sale of investments $600,000 $420,000 200,000 100,000 20,000 30,000 Income tax expense has not yet been accrued. The company\'s income tax rate is 40%. What amount should be reported in the company\'s year 2018 income statement as income from continuing operations?

Solution

Revenues 600,000 less: operating expenses 420,000 less:Restructuring costs 100,000          interest expense 20,000 Add:Gain on sale of invesment 30,000 income before tax 90,000 less income tax 40% 36,000 income from continuing operations 54,000 answer