p30 - taxes for 2007 would have been $24,000 instead of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Income Statement and Related Information 4 - 31 Solution 4-98 (cont.) Per share of common stock— Income from continuing operations $2.56 Discontinued operations loss net of tax (.42 ) Income before extraordinary item 2.14 Extraordinary item, net of tax (.98 ) Net income $1.16 Pr. 4-99 —Single-step income statement. Presented below is an income statement for Morton Company for the year ended December 31, 2007. Morton Company Income Statement For the Year Ended December 31, 2007 Net sales $800,000 Costs and expenses: Cost of goods sold 640,000 Selling, general, and administrative expenses 70,000 Other, net 20,000 Total costs and expenses 730,000 Income before income taxes 70,000 Income taxes 21,000 Net income $ 49,000 Additional information: 1. "Selling, general, and administrative expenses" included a usual but infrequent charge of $7,000 due to a loss on the sale of investments. 2. "Other, net" consisted of interest expense, $10,000, and an extraordinary loss of $10,000 before taxes due to earthquake damage. If the extraordinary loss had not occurred, income
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: taxes for 2007 would have been $24,000 instead of $21,000. 4. Morton had 20,000 shares of common stock outstanding during 2007. Instructions Using the single-step format, prepare a corrected income statement, including the appropriate per share disclosures. Test Bank for Intermediate Accounting, Twelfth Edition 4 - 32 Solution 4-99 Morton Company Income Statement For the Year Ended December 31, 2007 Net sales $800,000 Costs and expenses: Cost of goods sold $640,000 Selling, general, and administrative expenses 63,000 Interest expense 10,000 Infrequent chargeloss on sale of investments 7,000 Total costs and expenses 720,000 Income before taxes and extraordinary item 80,000 Income taxes 24,000 Income before extraordinary item 56,000 Extraordinary loss Earthquake damage 10,000 Less applicable taxes 3,000 (7,000 ) Net income $ 49,000 Per share of common stock Income before extraordinary item $2.80 Extraordinary loss, net of tax (.35 ) Net income $2.45...
View Full Document

Page1 / 2

p30 - taxes for 2007 would have been $24,000 instead of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online