Prepare the lower portion of the 2011 income statement beginning with $790,000.

Memorax Company earned before-tax income of $790,000 for its 2011 fiscal year. During the year, the company experienced a $520,000 loss from earthquake damage that it considered to be an extraordinary item. This loss is not included in the $790,000 before-tax income figure. The company's income tax rate is 40%. Prepare the lower portion of the 2011 income statement beginning with $790,000.

Solutions

Expert Solution

MEMORAX COMPANY

Partial Income Statement

For the Year Ended December 31, 2011

Income before income taxes and extraordinary item...............................................................................................$ 790,000

Income tax expense*..................................................................316,000

Income before extraordinary item ......................................474,000

Extraordinary item:

Loss from earthquake, net of $208,000 tax benefit...........................................................................................(312,000)

Net income ...............................................................................$ 162,000

*$790,000 x 40%

The net income is $ 162,000.

Renze Joy Candido answered 1 year ago

Next > < Previous

Related Solutions

Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss.

Wynn Farms reported a net operating loss of $132,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Wynn’s first four years of operation were as follows: Taxable Income Tax Rates Income Taxes Paid 2017 $ 68,000 25 % $ 17,000 2018 78,000 25 19,500 2019 112,000 25 28,000 2020 68,000 40 27,200 Prepare the journal entry to recognize the income tax benefit of the net...

Requirements a. Prepare a single statement of comprehensive income beginning with operating income. b. Prepare separate...

Requirements a. Prepare a single statement of comprehensive income beginning with operating income. b. Prepare separate statements of income and comprehensive income 1 Operating income amounted $390000 2. The company sold investments in bonds at a pretax loss of $20,000. 3. SuperbSuperb reported a $ 5 comma 500$5,500 unrealized loss on an available-for-sale portfolio that is included in other comprehensive income. 4. The company reported a $ 13 comma 000$13,000 unrealized gain on its trading portfolio, which is included in...

2. Use the information below to prepare an Income Statement and Balance Sheet for 2011 &...

2. Use the information below to prepare an Income Statement and Balance Sheet for 2011 & 2012. Also include a 40% tax rate expense on your pretax income. 2011 2012 Sales $4,203 $4,507 Cost of Goods Sold 2,422 2,633 Depreciation 785 952 Interest 180 196 Dividends 225 250 Current Assets 2,205 2,429 Net fixed Assets 7,344 7,650 Current Liabilities 1,003 1,255 Long-Term debt 3,106 2,085

Joyner Company’s income statement for Year 2 follows: Joyner Company’s Income Statement Sales $ 790,000 Cost...

Joyner Company’s income statement for Year 2 follows: Joyner Company’s Income Statement Sales $ 790,000 Cost of goods sold 406,000 Gross margin 384,000 Selling and administrative expenses 216,000 Net operating income 168,000 Nonoperating items: Gain on sale of equipment 6,000 Income before taxes 174,000 Income taxes 52,200 Net income $ 121,800 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Joyner Company's Balance Sheet Year 2 Year 1 Assets Cash $ 221,000 $ 207,500...

Prepare an income statement for 2018.

The following account balances were taken from the 2018 adjusted trial balance of the Bowler Corporation:sales revenue, $325,000cost of goods sold, $168,000salaries expense, $45,000 rent expense, $20,000depreciation expense, $30,000and miscellaneous expense, $12,000Prepare an income statement for 2018.

Prepare an income statement for the year

The adjusted trial balance of Wilder Company at December 31,2017,includes the following accounts: Owner's Capital $15,600 Owner's Drawings 7,000 Service Revenue 39,000 Salaries & Wages Expense 16,000 Insurance Expense 2,000 Rent Expense 4,000 Supplies Expense 1,500 Depreciation Expense 1,300 Prepare an income statement for the Year

Required: Prepare the Income Statement (Multiple Step Format) Prepare the Statement of Retained Earnings Prepare the...

Required: Prepare the Income Statement (Multiple Step Format) Prepare the Statement of Retained Earnings Prepare the Balance Sheet (Classified Format) Prepare the necessary year-end closing entries Prepare the Year End Trial Balance

A portion of the combined statement of income and retained earnings of Culver Inc. for the...

A portion of the combined statement of income and retained earnings of Culver Inc. for the current year follows. Income before extraordinary item $14,960,000 Loss from discontinued operations, net of applicable income tax (Note 1) 1,370,000 Net income 13,590,000 Retained earnings at the beginning of the year 82,330,000 95,920,000 Dividends declared: On preferred stock—$6.00 per share $282,000 On common stock—$1.75 per share 14,770,000 15,052,000 Retained earnings at the end of the year $80,868,000 Note 1. During the year, Culver Inc....

Prepare a single step income statement

Summary operating data for custom wire & tubing company during the year april 30,2019 are as follows ParticularsAmount$Cost of merchandise61,00,000Administrative expenses7,40,000Interest Expense25,000Rent Revenue60,000Sales 12,50,000Prepare a single step income statement

1. Prepare in good format, an income statement. 2. Prepare in good format, a statement of...

1. Prepare in good format, an income statement. 2. Prepare in good format, a statement of owner’s equity. 3. Prepare a classified year-end balance sheet. (Note: A $9,000 installment on the long-term note payable is due within one year.) Account Debit Credit Cash $ 112,000 Accounts receivable 27,000 Prepaid rent 15,000 Prepaid Insurance 9,000 Office supplies 3,300 Office equipment 38,000 Accumulated depreciation–Equipment $3,200 Building 288,000 Accumulated depreciation–Building 42,000 Land 700,000 Accounts payable 25,800 Salaries payable 14,500 Interest payable 2,500 Long-term...

Subjects