Team+A+powerpoint+P4-3

Team+A+powerpoint+P4-3 - P4-3 income from continous...

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: P4-3 income from continous operations before taxes: 1 Income from continous operations before taxes loss of sale of securities Gain on proceeds of life insurance policy Correction in erros Depreciation computation (\$54,000 / 6= \$9000) (54000 - 9000 / 6= \$7,500 ) \$790,000 -57,000 64,000 \$9,000 -7,500 6 Per share of common stock: Income from continuing operations Income from discontinued operation, net of tax Income before extraordinary item Loss from extraordinary item, net of tax Net income per share \$1,500 \$798,500 80,000 shares of stock \$578500/80,000 = 7.23 \$80500 /80,000 = 1.01 \$798,500 (\$64,000) 43,200/80,000 = \$0.54 2 Income tax computation Income from conitnuing operations before taxes nontaxable income -from gain on life insurance 3 Taxable Income Tax rate (.30) 4 Discontinued operations Income from continuing operatins (\$115,000 x .30%= \$34,500) 5 Extraordinary item Income from continuing operations (\$80000 X .46% = \$36,800 ) \$734,500 0.30% \$220,350 \$578,150 \$80,500 \$497,650 \$497,650 (\$43,200) \$454,450 7 We enter the income statement \$7.23 1.01 6.22 0.54 \$5.68 ...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online