Less Dividends declared Ending retained earnings 125000 37300 17000 Attributed

Less dividends declared ending retained earnings

This preview shows page 2 - 6 out of 7 pages.

Less: Dividends declared ? Ending retained earnings $125,000 *$37,300-$17,000 (Attributed to controlling shareholders). Dividends declared must be $9,700 ($134,700 – $125,000)
Image of page 2
(d) Income attributed to controlling stockholders = (Net income – allocation to noncontrolling interest) $37,300 - $17,000 = $ 20,300 Net income $37,300 Allocation to noncontrolling interest 17,000 Income attributable to controlling interest $20,300 E-4-8 (a) Net sales $ 540,000 Cost of goods sold (210,000) Administrative expenses (100,000) Selling expenses (80,000) Discontinued operations-loss (40,000 ) Income before income tax 110,000 Income tax ($110,000 X .30) 33,000 Net income $ 77,000 (b) Income from continuing operations before income tax $150,000* Income tax ($150,000 X .30) 45,000 Income from continuing operations 105,000 Discontinued operations, less applicable income tax of $12,000 (28,000 ) Net income $ 77,000 *Income from income tax $110,000
Image of page 3
Discontinued operations 40,000 $150,000 Earnings per share: Income from continuing operations ($105,000 ÷ 10,000) $10.50 Loss on discontinued operations, net of tax (2.80 ) Net Income ($77,000 ÷ 10,000) $ 7.70 E-4-14 a) 2017 Income before income tax $450,000 Income tax (35%) 157,500 Net Income $292,500 (b) Cumulative effect for years prior to 2017. Year Weighted- Average FIFO Difference Tax Rate (35%) Net Effect 2015 $370,000 $395,000 $25,000 2016 390,000 430,000 40,000 Total $65,000 $22,750 $42,250 (c) 2017 2016 2015 Income before income tax $450,000 $430,000 $395,000 Income tax (35%) 157,500 150,500 138,250 Net income $292,500 $279,500 $256,750 E-4-15 (a)
Image of page 4
ROXANNE CARTER CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2017 Sales revenue $1,200,000 Cost of goods sold 750,000 Gross profit 450,000 Selling and administrative expenses 320,000 Net income 130,000
Image of page 5
Image of page 6

You've reached the end of your free preview.

Want to read all 7 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture