Extraordinary item Loss due to earthquake less tax saving of 3150 3850 Net

Extraordinary item loss due to earthquake less tax

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Extraordinary item: Loss due to earthquake, less tax saving of $3,150 (3,850) Net income $ 70,290
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Financial Accounting & Reporting Updating Supplement Version 38.3 11-15 Copyright © 2009 by Bisk Education, Inc. All rights reserved. Page 43 of 160 4.Single-Step FormatIncome from continuing operations may be presented in a multiple step formator a single step format.Presentation of income from continuing operations in a single step formatis often used for publicly issued statements. Revenues are grouped under one classification while expenses are grouped under another classification. Exhibit 7 `Single-Step Format Sales (less returns and allowances of $16,500) $ 933,500 Rent 2,500 Interest and dividends 6,700 Gain on sale of machinery 8,000Revenues 950,700 Cost of goods sold $ 582,700 Selling 150,000 General & administrative 72,000 Interest 5,200 Loss on sale of investments 6,000Expenses (815,900) Income from continuing operations before income taxes 134,800 Provision for income taxes (60,660) Income from continuing operations 74,140 Extraordinary item: Loss due to earthquake, less tax saving of $3,150 (3,850) Net income $ 70,290IV. Comprehensive Income A. Comprehensive Income The recognition and measurement of comprehensive income is based upon current accounting standards (GAAP). Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income is divided into net income and other comprehensive income. 1.Components and Total ReportedAll components of comprehensive income must be reported in the financial statements in the period in which they are recognized. A total amount for comprehensive income must be displayed in the financial statement where the components of OCI are reported. 2.Interim-Period ReportingAn entity must report a total for comprehensive income in con-densed financial statements of interim periods. B. Other Comprehensive Income (OCI) Items that previously were included in the equity section as a separate component of owners’ equity are required to be reported in other comprehensive income. These items continue to be determined in the same manner; GAAP has not changed regarding the nature of these items and how and when they are measured and reported. Other comprehensive income has no effect on direct adjustments to equity accounts, such as capital stock transactions and transactions related to retained earnings. 1.ClassificationAn entity must classify items of other comprehensive income by their nature, in one of these classifications: foreign currency items, pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, and gains and losses on cash flow hedging derivative instruments. Additional classifications or additional items within current classifications may result from future accounting standards.
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