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Problem T7-6AA Income statement computations and Tormat LO A [The following information applies to the questions displayed below. Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year end December 31, 2013, follow. Credit 5 14,200 Debit a. Interest revenue $ 34,200 c. Loss on sale of equipment d. Accounts payable e. Other operating expenses 26,050 44,200 106,600 71,800 44,200 74,900 pment g. Gain from settlement of lawsuit 18,450 i. Loss from operating a discontinued segment (pretax) j. Gain on insurance recovery of tornado damage (pretax and extraordinary) k. Net sales . Depreciation expense-Buildings m. Correction of overstatement of prior year's sales (pretax) n. Gain on sale of discontinued segment's assets (pretax) o. Loss from settlement of lawsuit p. Income taxes expense q. Cost of goods sold 29,320 1,000,500o 52,200 16,200 23,950 484,500 35,000 Section Break Problem 17-6AA Income statement computations and format LO A2 value: 2.00 points Problem 17-6AA Part 1 Required: I. Assume that the company's income tax rate is 30% for all items. Compute the tax effects and after-tax amounts of the four items labeled pretax. (Loss amounts should be indicated with a minus sign.) 30% Tax Pretax Effect After-Tax Loss from operating a discontinued segment Gain on insurance recovery of tornado damage Correction of overstatement of prior year's sales Gain on sale of discontinued segment's assets

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