50.1K

Verified Solution

Link Copied!

Metlock Corp. has 149,160 shares of common stock outstanding. In 2025, the company reports income from continuing operations before income tax of $1,230,600. Additional transactions not considered in the $1,230,600 are as follows. 1. 2. 3. 4. In 2025, Metlock Corp. sold equipment for $36,300. The machine had originally cost $81,400 and had accumulated depreciation of $30,900. The gain or loss is considered non-recurring. The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,600 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $93,400 before taxes; the loss from disposal of the subsidiary was $97,200 before taxes. An internal audit discovered that amortization of intangible assets was understated by $38,100 (net of tax) in a prior period. The amount was charged against retained earnings. The company recorded a non-recurring gain of $127,200 on the condemnation of some of its property (included in the $1,230,600). Analyze the above information and prepare an income statement for the year 2025, starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 19% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, e.g. 1.47.) Income from Continuing Operations METLOCK CORP. Income Statement (Partial) For the Year Ended December 31, 2025 $ 1216400 Question 1 Accounting Dropdown Question 2 Accounting Dropdow Question 3 Accounting Dropdow Question 4 Accounting Dropdow Question 5 Accounting Dropdow Question 6 Accounting Dropdo Question 7 Accounting Dropdc Question 8 Accounting Multist

Metlock Corp. has 149,160 shares of common stock outstanding in 2025, the company reports income from continuing operations before income tax of $1,230,600. Additional transactions not considered in the $1,230,600 are as follows. 1. In 2025 , Metlock Corp, sold equipment for $36,300. The machine had originally cost $81,400 and had accumulated depreciation of $30,900. The gain or loss is considered non-recurring 2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,600 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinucd subsidiary was $93,400 before taxes; the loss from disposal of the subsidiary was $97,200 before taxes. 3. An internal audit discovered that amortization of intangible assets was understated by $38,100 (net of tax) in a prior period. The amount was charged against retained earnings. 4. The company recorded a non-recurring gain of $127,200 on the condemnation of some of its property (included in the $1,230,600). Analyze the above information and prepare an income statement for the year 2025, starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 19% on all items, uniless otherwise indicated) (Round earnings per share to 2 decimal places, eg. 1.47.)

Answer & Explanation Solved by verified expert

See Answer