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Skysong Inc. reported income from continuing operations before taxes during $2017$ of $$2,200,000.$ Additional transactions occurring

in $2017$ but not considered in the $$2,200,000$ are as follows.

A gain of $$126,000($pretax$)$ as a result of selling securities from its investment portfolio.

A $$15,000$ loss before taxes as a result of operating the discontinued clothing division during $2017.$

A loss of $$74,000$ before taxes as a result of disposing of its clothing division. Assume that this transaction meets the criteria

for discontinued operations.

An uninsured $$134,000$ loss due to a fire.

At the beginning of $2015,$ the corporation purchased a machine for $$280,000($salvage value of $$35,000)$ that had a useful life

of $10$ years. The bookkeeper used straight$-$line depreciation for $2015,2016,$ and $2017,$ but failed to deduct the salvage value

in computing the depreciation base.

The corporation decided to change its method of inventory pricing from average$-$cost to the FIFO method. The effect of this

change on prior years is to increase $2015$ income by $$61,000$ and decrease $2016$ income by $$28,000$ before taxes. The FIFO

method has been used for $2017.$

Prepare an income statement for the year $2017$ starting with income from continuing operations before taxes. Compute earnings per

share as it should be shown on the face of the income statement. Common shares outstanding for the year are $400,000$ shares.

$($Assume a tax rate of $30\%$ on all items.$)($Round earnings per share to $2$ decimal places, e$.$g$.1\mathrm{.}48$ and all other answers to $0$

decimal places, e$.$g$.5,275.)$

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