Concluding Remarks - (not including irregular items and...

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

View Full Document Right Arrow Icon
CONCLUDING REMARKS We have shown that the computation of the correct net income number can be elusive. In assessing  the future prospects of a company, some investors focus on income from operations and therefore  ignore all irregular and other items. Others use measures such as net income, comprehensive income,  or some modified version of one of these amounts.  before you go on. .. Do it! IRREGULAR ITEMS In its draft 2010 income statement, AIR Corporation reports income before inco taxes $400,000, extraordinary loss due to earthquake $100,000, income taxes $1
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: (not including irregular items), and loss on disposal of discontinued flower divis $140,000. The income tax rate is 30%. Prepare a correct income statement, begi with income before income taxes. Solution Income Statement (partial) Income before income taxes Income before irregular items Discontinued operations Loss on disposal of discontinued flower division, net of Extraordinary earthquake loss net of $30,000 tax saving...
View Full Document

This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 201 taught by Professor - during the Spring '11 term at Montgomery.

Page1 / 2

Concluding Remarks - (not including irregular items and...

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