Statement of abc corporation for 2011

Assignment Help Financial Accounting

Reference no: EM1378112

ABC Corporation had Net Income from continuing operations for year 2011 totaling $340,000. The accountant did not take into account the subsequent information (Assume a tax rate of 40%):

1. The corporation experienced an uninsured flood loss of $50,000 before taxes. While this loss meets the criterion of an extraordinary item, it has not been recorded.

2. The corporation disposed of its sporting goods division during 2010. This disposal meets the criterion for discontinued operations. The division correctly evaluated income from operating this division of $100,000 before taxes and a loss of $12,000 before taxes on the disposal of the division. All of these events occurred in 2010 and have not been recorded.

Required: Show in good form the income statement of ABC Corporation for 2011 starting with "income from continuing operations." Suppose that ABC's tax rate is 40 percent and 100,000 shares of common stock were outstanding during the year.

Reference no: EM1378112

Questions Cloud

What role do demographics comedy in service innovation : What role do demographics comedy in service innovation? Give some examples. How can you protect a service innovation from existence copied by major competitors?

Find a real-life outsourcing decision : Find a real-life outsourcing decision that has been made. Find the specific reasons for the outsourcing.

Discussion of pfizer environmental landscape : Explain the two opportunities chosen in week one in terms of Pfizer's marketplace. Adequately explain the alignment in the opportunities selected and organization's strategy and targets.

Prepare all the required journal entries : Prepare all the required journal entries and find the type of fund in which each entry was recorded for the Government Wide Financial Statements.

Statement of abc corporation for 2011 : Show in good form the income statement of ABC Corporation for 2011 starting with "income from continuing operations." Suppose that ABC's tax rate is 40 percent and 100,000 shares of common stock were outstanding during the year.

Create the entry to record the asset retirement obligation : Create the entry to record the asset retirement obligation. Use Oil Platform as an account title and Prepare the journal entries to record

Find the information reported on schedule m-3 : which is not consolidated by PGW for U.S. tax purposes, had net income of $31 million TSI, which is consolidated for U.S. tax purposes, had a loss of $16 million. Find the information reported on Schedule M-3?

Discuss and define reengineering : Does it offer something of lasting value and provide some examples of conditions where re-engineering succeeded and examples where you would not recommend using this strategy.

Determine firms cost of retained earnings : Determine the firm's cost of retained earnings and the cost of new common equity and determine the break-point associated with retained earnings.

User Account

All Pages