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.)

Solutions

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 1 year ago

Next > < Previous

Related Solutions

Lance Corporation had income from continuing operations of $900,000 (after taxes) in 2019. In addition, the...

Lance Corporation had income from continuing operations of $900,000 (after taxes) in 2019. In addition, the following information, which has not been considered, is as follows. 1. In 2019, Lance adopted the double-declining balance method of depreciating equipment. Prior to 2019, Vance had used the straight-line method. The change decreases income for 2019 by $60,000 (pre-tax) and the cumulative effect of the change on prior years' income was a $250,000 (pre-tax) decrease. 2. A machine was sold for $240,000 cash...

Brief Exercise 23-4 Bloom Corporation had the following 2014 income statement. Sales revenue $219,850 Cost of...

Brief Exercise 23-4 Bloom Corporation had the following 2014 income statement. Sales revenue $219,850 Cost of goods sold 112,740 Gross profit 107,110 Operating expenses (includes depreciation of $20,360) 53,250 Net income $53,860 The following accounts increased during 2014: Accounts Receivable $11,090; Inventory $10,530; Accounts Payable $14,260. Prepare the cash flows from operating activities section of Bloom’s 2014 statement of cash flows using the direct method.

Exercise #4: A Manufacturing Corporation had the following transactions for its first month of operations: ...

Exercise #4: A Manufacturing Corporation had the following transactions for its first month of operations: The Corporation purchased raw materials on account, $85,000. Factory managers requisitioned Raw Materials of $30,000 to the factory. The materials requisition slips indicated that $6,000 was classified as indirect materials. Factory labor costs incurred were $125,000 of which $100,000 pertained to factory wages payable and $25,000 pertained to employer payroll taxes payable. Time tickets indicated that $104,000 was direct labor and...

5. For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before...

5. For the year ending December 31, 2021, Olivo Corporation had income from continuing operations before taxes of $1,280,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material. In November 2021, Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2021. The income from operations of the chain from...

This year, Sigma Inc. generated $627,000 income from its routine business operations. In addition, the corporation...

This year, Sigma Inc. generated $627,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months. InitialBasis Acc.Depr.* Sale Price Marketable securities $ 153,400 $ 0 $ 72,750 Production equipment 121,600 97,280 35,250 Business realty: Land 168,750 0 190,000 Building 255,000 76,500 211,000 *Through date of sale. Compute Sigma’s taxable income assuming that it used the straight-line method to calculate depreciation on the building and has...

This year, Sigma Inc. generated $633,000 income from its routine business operations. In addition, the corporation...

This year, Sigma Inc. generated $633,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months. InitialBasis Acc.Depr.* Sale Price Marketable securities $ 183,200 $ 0 $ 85,250 Production equipment 108,400 86,720 35,500 Business realty: Land 222,750 0 233,250 Building 287,000 86,100 298,000 *Through date of sale. Compute Sigma’s taxable income assuming that it used the straight-line method to calculate depreciation on the building and has...

Wayne Corporation had income from operations of $385,000, it received interest payments of $15,000, it paid...

Wayne Corporation had income from operations of $385,000, it received interest payments of $15,000, it paid interest of $20,000, it received dividends from another corporation of $10,000, and it paid $40,000 in dividends to its common stockholders. What is Wayne’s federal income tax? $141,700 $130,220 $122,760 $163,500 $155,200

The Bridgeport Corporation had income from continuing operations of $12 million in 2020. During 2020, it...

The Bridgeport Corporation had income from continuing operations of $12 million in 2020. During 2020, it disposed of its restaurant division at a loss of $98,000 (net of tax of $38,000). Before the disposal, the division operated at a loss of $202,000 (net of tax of $135,000) in 2020. Blue Collar also had an unrealized gain-OCI of $44,000 (net of tax of $18,000) related to its FV-OCI equity investments. Bridgeport had 10 million common shares outstanding during 2020. Prepare a...

The Talley Corporation had a taxable income of $300,000 from operations after all operating costs but...

The Talley Corporation had a taxable income of $300,000 from operations after all operating costs but before (1) interest charges of $30,000, (2) dividends received of $15,000, (3) dividends paid of $24,000, and (4) income taxes. What are the firm's income tax liability and its after-tax income? Round your answers to two decimal places. Income tax liability $ After-tax income $ What are the company's marginal and average tax rates on taxable income? Round your answers to two decimal places....

Sheffield Corporation, a clothing retailer, had income from operations (before tax) of $427,500, and recorded the...

Sheffield Corporation, a clothing retailer, had income from operations (before tax) of $427,500, and recorded the following before-tax gains/(losses) for the year ended December 31, 2020: Gain on disposal of equipment 30,780 Unrealized (loss)/gain on FV-NI investments (61,560 ) (Loss)/gain on disposal of building (77,520 ) Gain on disposal of FV-NI investments 37,620 Sheffield also had the following account balances as at January 1, 2020: Retained earnings $467,400 Accumulated other comprehensive income (this was due to a revaluation surplus on...

Subjects