Brief Exercise 4-5 Bramble Corporation had income from operations of $6,285,800. In addition, it suffered an...

Brief Exercise 4-5

Bramble Corporation had income from operations of $6,285,800. In addition, it suffered an unusual and infrequent pretax loss of $781,200 from a volcano eruption, interest revenue of $15,910, and a write-down on buildings of $50,000. The corporation’s tax rate is 30%. Prepare a partial income statement for Bramble beginning with Income from operations. The corporation had 4,961,500 shares of common stock outstanding during 2017. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Expert Solution

Bramble Corporation
Income Statement - Partial
For the year ended 2017

Particulars	Amount ($)	Amount ($)

Income from operations		62,85,800
Add: Other revenues & gains
Interest revenue		15,910
Total revenue		63,01,710
Less: Other expenses & losses
Unusual and infrequent pretax loss	7,81,200
Write-down value on buildings	50,000	8,31,200
Income before income taxes		54,70,510
Less: Tax at 30% [$54,70,510 x 30%]		16,41,153
Net Income		38,29,357

Earnings per share [$38,29,357 / 49,61,500 Shares o/s]		$0.77 per share

ekkarill92 answered 2 years ago

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