90.2K

Verified Solution

Link Copied!

More explanation. Solution is provided but what i need explained please by an expert or someone who can is how do i include the last two entries on the last page on the income statement. I am having a hard time understanding gains and losses on discontinued operations and how to place on the income statement is it before tax? After tax? Do i always remove the tax on the entries? Also, if someone can please check my eps amounts if they are correct.

94. Multiple-step income statement. (5 Points) Presented below is information related to Farr Company. Retained earnings, December 31, 2010 Sales Selling and administrative expenses Hurricane loss (pre-tax) on plant (extraordinary item) Cash dividends declared on common stock Cost of goods sold Gain resulting from computation error on depreciation charge in 2009 (pre-tax) Other revenue Other expenses $650,000 B 240,000 290,000 33600 7801000 10 Instructions Prepare in good form a multiple-step income statement for the year 2011 . Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year. aenve to, oco 94. Multiple-step income statement. (5 Points) Presented below is information related to Farr Company. Retained earnings, December 31, 2010 Sales Selling and administrative expenses Hurricane loss (pre-tax) on plant (extraordinary item) Cash dividends declared on common stock Cost of goods sold Gain resulting from computation error on depreciation charge in 2009 (pre-tax) Other revenue Other expenses $650,000 B 240,000 290,000 33600 7801000 10 Instructions Prepare in good form a multiple-step income statement for the year 2011 . Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year. aenve to, oco

Answer & Explanation Solved by verified expert

See Answer