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

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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 ...
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