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 wa. $160,000 and $180,000, respectively. Pretax income using weighted-average pricing in the prior year would 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 Williamson peginning with “Income before income tax," as presented on the 2020 income statement. (The tax ra n all years is 30%.)

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 wa. $160,000 and $180,000, respectively. Pretax income using weighted-average pricing in the prior year would 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 Williamson peginning with “Income before income tax," as presented on the 2020 income statement. (The tax ra n all years is 30%.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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