P21 - Income Statement and Related Information 4 13 60 An income statement shows income before income taxes and extraordinary items in the amount

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Income Statement and Related Information 4 - 13 60. An income statement shows “income before income taxes and extraordinary items” in the amount of $2,055,000. The income taxes payable for the year are $1,080,000, including $360,000 that is applicable to an extraordinary gain. Thus, the “income before extraordinary items” is a. $1,335,000. b. $615,000. c. $1,395,000. d. $675,000. 61. Cole Company, with an applicable income tax rate of 30%, reported net income of $210,000. Included in income for the period was an extraordinary loss from flood damage of $30,000 before deducting the related tax effect. The company's income before income taxes and extraordinary items was a. $240,000. b. $300,000. c. $330,000. d. $231,000. 62. A review of the December 31, 2007, financial statements of Baden Corporation revealed that under the caption "extraordinary losses," Baden reported a total of $515,000. Further analysis revealed that the $515,000 in losses was comprised of the following items:
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This note was uploaded on 11/03/2011 for the course ACCT 3223 taught by Professor Peck during the Spring '11 term at Texas State.

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P21 - Income Statement and Related Information 4 13 60 An income statement shows income before income taxes and extraordinary items in the amount

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