P15-8A - gains of $100,000, which are not included in the...

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P15-8A Correct. Cheaney Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on Septem- ber 1, 2008. The 2008 operating results for the company were as follows. Operating revenues $12,850,000 Operating expenses 8,700,000 Operating income $ 4,150,000 Analysis discloses that these data include the operating results of the hotel chain, which were: operating revenues $2,000,000 and operating expenses $2,400,000.The hotels were sold at a gain of $200,000 before taxes. This gain is not included in the operating results. During the year, Cheaney suffered an extraordinary loss of $800,000 before taxes, which is not included in the operating results. In 2008, the company had other revenues and
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Unformatted text preview: gains of $100,000, which are not included in the operating results. The corporation is in the 30% income tax bracket. Instructions Complete the condensed income statement. (List amounts from largest to smallest eg 10, 5, 3, 2.) CHEANEY CORPORATION Condensed Income Statement For the Year Ended December 31, 2008 Operating revenues $ 10850000 Operating expenses 6300000 Income from operations 4550000 Other revenues and gains 100000 Income before income taxes 4650000 Income tax expense 1395000 Income from continuing operations 3255000 Discontinued operations Loss from operations of hotel chain $ 280000 Gain on sale of hotels 140000 140000 Income before extraordinary item 3115000 Extraordinary item Extraordinary loss 560000 Net income $ 2555000...
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