This paper circulates around the core theme of Prepare an income statement for the year 2014 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 120,800 shares. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Maher Inc. reported income from continuing operations before taxes
during 2014 of $817,000. Additional transactions occurring in 2014 but
not considered in the $817,000 are as follows.
1. |
|
The corporation experienced an uninsured flood loss (extraordinary)
in the amount of $92,400 during the year. The tax rate on this item is
46%. |
2. |
|
At the beginning of 2012, the corporation purchased a machine for
$63,000 (salvage value of $10,500) that had a useful life of 6 years.
The bookkeeper used straight-line depreciation for 2012, 2013, and 2014
but failed to deduct the salvage value in computing the depreciation
base. |
3. |
|
Sale of securities held as a part of its portfolio resulted in a loss of $61,700 (pretax). |
4. |
|
When its president died, the corporation realized $152,100 from an
insurance policy. The cash surrender value of this policy had been
carried on the books as an investment in the amount of $49,600 (the gain
is nontaxable). |
5. |
|
The corporation disposed of its recreational division at a loss of
$116,800 before taxes. Assume that this transaction meets the criteria
for discontinued operations. |
6. |
|
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 2012 income by $62,760 and decrease 2013 income by
$20,300 before taxes. The FIFO method has been used for 2014. The tax
rate on these items is 40%. |
Prepare an income statement for the year 2014 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 120,800 shares. (Assume a tax rate of 30%
on all items, unless indicated otherwise.)(Round earnings per share to 2 decimal places, e.g. 1.48 and all other answers to 0 decimal places, e.g. 5,275.)