Are as follows 90000 during the year the tax rate on

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$790,000 $790,000 are as follows.$90,000 during the year. The tax rate on this item is46%$54,000 (salvage value of$9,000 ) that had a useful life of6 years. The bookkeeper used $57,000 (pretax).$150,000 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amountof$46,000 (the gain is nontaxable).$115,000 before taxes. Assume that this transaction meets the criteria for discontinued operations.$60,000 $20,000 before taxes. The FIFO method has been 40%Instructions:Common shares outstanding for the year are120,000 shares. (Assume a tax rateof30%on all items, unless indicated otherwise.)P4-3 (Irregular Items) Maher Inc. reported income from continuing operations before taxes during 2014 of $790,000. Additional transactions occurring in 2014 but not considered in the1. The corporation experienced an uninsured flood loss (extraordinary) in the amount of 2.At the beginning of 2010, the corporation purchased a machine forstraight-line depreciation for 2012, 2013, and 2014 but failed to deduct the salvage value in computing the depreciation base.3.Sale of securities held as a part of its portfolio resulted in a loss of4.When its president died, the corporation realized5.The corporation disposed of its recreational division at a loss of6.The corporation decided to change its method of inventory pricing from average cost to the FIFO method. The effect of this change on prior years is to increase 2012 income by and decrease 2013 income byused for 2014. The tax rate on these items isPrepare an income statement for the year 2014 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of the income statement. MAHER INC.Income Statement (Partial)$838,500 220,350 Income from continuing operations618,150 Discontinued operationsLoss from disposal of recreational division$115,000 Less: Applicable income tax reduction34,500 80,500 Income before extraordinary item537,650 Extraordinary item:Major casualty loss90,000 Less: Applicable income tax reduction41,400 48,600 Net income$489,050 Per share of common stock:Income from continuing operations ($618,150 / 120,000 shares) (Rounded)$5.15 Discontinued operations, net of tax ($80,500 / 120,000 shares) (Rounded)(0.67)Income before extraordinary items4.48 Extraordinary item, net of tax ($48,600 / 120,000 shares)(0.41)Net income ($489,050 ÷ 120,000 shares)$4.08 As previously stated$790,000 Loss on sale of securities(57,000)Gain on proceeds of life insurance policy ($150,000 – $46,000)104,000 Error in computation of depreciationAs computed ($54,000 ÷ 6)9,000 Corrected (($54,000 – $9,000) ÷ 6)7,500 1,500 As restated$838,500 Income from continuing operations before taxes$838,500 Nontaxable income (gain on life insurance)(104,000)Taxable income734,500 Tax rate30%Income tax expense$220,350 Intermediate Accounting, 15thEdition by Kieso, Weygandt, and WarfieldFor the Year Ended December 31, 2014Income from continuing operations before income tax (a)Income tax (b)(a)Computation of income from continued operations before taxes:(b)Computation of income tax:

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