BE4.5 (LO 2, 3) Stacy Corporation had income from operations of an unusual and infrequent pretax loss of $770,000 from a volcano eruption, interest revenue of $17,000, and a write-down on buildings of $53,000. The corporation's tax rate is 30%. Prepare a partial income statement for Stacy beginning with Income from operations. The corporation had 5,000,000 shares of common stock outstanding during 2020. BE4.6 (LO 4) During 2020, Williamson Company changed from FIFO to weighted-average inven- cory pricing. Pretax income in 2019 and 2018 (Williamson's first year of operations) under FIFO wa: 5160,000 and $180,000, respectively. Pretax income using weighted-average pricing in the prior year vould have been $145,000 in 2019 and $170,000 in 2018. In 2020, Williamson reported pretax incom using weighted-average pricing) of $180,000. Show comparative income statements for Williamsor eginning with "Income before income tax," as presented on the 2020 income statement. (The tax ra a all 000. In it years is 30%.)

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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I need help with these brief exercises 4 and 5 for this assignment in accounting.

BE4.5 (LO 2, 3) Stacy Corporation had income from operations of $7,200,000. In addition, it suffered
an unusual and infrequent pretax loss of $770,000 from a volcano eruption, interest revenue of $17,000,
and a write-down on buildings of $53,000. The corporation's tax rate is 30%. Prepare a partial income
statement for Stacy beginning with Income from operations. The corporation had 5,000,000 shares of
common stock outstanding during 2020.
BE4.6 (LO 4) During 2020, Williamson Company changed from FIFO to weighted-average inven-
tory pricing. Pretax income in 2019 and 2018 (Williamson's first year of operations) under FIFO was
$160,000 and $180,000, respectively. Pretax income using weighted-average pricing in the prior years
would have been $145,000 in 2019 and $170,000 in 2018. In 2020, Williamson reported pretax income
(using weighted-average pricing) of $180,000. Show comparative income statements for Williamson
beginning with “Income before income tax," as presented on the 2020 income statement. (The tax rat
in all years is 30%.)
Transcribed Image Text:BE4.5 (LO 2, 3) Stacy Corporation had income from operations of $7,200,000. In addition, it suffered an unusual and infrequent pretax loss of $770,000 from a volcano eruption, interest revenue of $17,000, and a write-down on buildings of $53,000. The corporation's tax rate is 30%. Prepare a partial income statement for Stacy beginning with Income from operations. The corporation had 5,000,000 shares of common stock outstanding during 2020. BE4.6 (LO 4) During 2020, Williamson Company changed from FIFO to weighted-average inven- tory pricing. Pretax income in 2019 and 2018 (Williamson's first year of operations) under FIFO was $160,000 and $180,000, respectively. Pretax income using weighted-average pricing in the prior years would have been $145,000 in 2019 and $170,000 in 2018. In 2020, Williamson reported pretax income (using weighted-average pricing) of $180,000. Show comparative income statements for Williamson beginning with “Income before income tax," as presented on the 2020 income statement. (The tax rat in all years is 30%.)
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