QUESTON Spartaly correct 143 points out of 200 PRag question

QUEST?ON Spartaly correct 143 points out of 2.00 PRag question Income Statement Sections During the current year, Dale Corporation incurred an extraordinary tornado loss of $330,000 and sold a segment of its business at a gain of $199,.000. Until it was sold, the segment had a current period operating loss of $78000. Also, the company discovered that an error caused last years ending inventory to be understated by $34,000 (a material amount The company had $830,000income from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $830,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 40 percent income tax rate. Disregard earnings per share disclosures income from Continuing Operations 830000 Discontinued Operations Loss from operations of discontinued segment 46800 Gsin on disposal of discontinued segment 19.400 72600 Income before Extreodinery Item 902,600 Extraordinery iem Tornado Loss Net Income Check You have correctly selected 5. Partialily correct 5 6 8 9

Solution

Extraordinary Item

Tornado Loss ($330,000)

Net Income $572,600