Exam 1 Extra Credit.docx - Question 1(5 points Extra Credit...

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Question 1 (5 points Extra Credit): Anderson Corporation had income from operating activities of $769,230 (before taxes) in 2015 with an expected tax rate of 35%. Assume the calculation of income from operating activities is correct and includes all relevant information. The company has the following information: 1. Land was sold for $200,000 cash during the year at a time when its book value was $150,000. Anderson Corporation regularly sells land of this type. 2. In 2013, a tornado leveled Anderson Corporation’s headquarters. Anderson experienced an uninsured tornado loss in the amount of $800,000. This event is both unusual and infrequent in nature and has an applicable tax benefit of $350,000. 3. Anderson decided to discontinue its coffee maker division in 2013. During the current year, the gain on the disposal of this component of the business was $120,000 with an applicable tax expense of $42,000. Present in good form the income statement of Wilcox Corporation for 2013 starting at "income from operating activities". Assume 250,000 shares of common stock were outstanding during the year. Round EPS items to two decimal places.
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