b) Using the information provided, prepare an income statement for 2001 similar to Exhibit 16.2 (This is the income statement from Lesson 3 showing the 4 sections). Cumulative effect of a change in amortization method (net of $26, 000 tax benefit) $ (136,500) Expenses (related to continuing operations) (2,072,500) Extraordinary gain on expropriated land (net of $71,000 tax expense) 275,500 Gain on disposal of discontinued operation's assets (net of $8,600 tax expense) 37,500 Gain on sale of investment in shares 400,00 Loss from operating discontinued operations (net of $40,000 tax expense) (182,500) Income taxes on income from continuing operations (660,00) Sales 5,375,000 Loss from the sale of plant assets (650,000) *The assets were items of equipment replaced with new technology.

b) Using the information provided, prepare an income statement for 2001 similar to Exhibit 16.2 (This is the income statement from Lesson 3 showing the 4 sections). Cumulative effect of a change in amortization method (net of $26, 000 tax benefit) $ (136,500) Expenses (related to continuing operations) (2,072,500) Extraordinary gain on expropriated land (net of $71,000 tax expense) 275,500 Gain on disposal of discontinued operation's assets (net of $8,600 tax expense) 37,500 Gain on sale of investment in shares 400,00 Loss from operating discontinued operations (net of $40,000 tax expense) (182,500) Income taxes on income from continuing operations (660,00) Sales 5,375,000 Loss from the sale of plant assets (650,000) *The assets were items of equipment replaced with new technology.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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