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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
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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I need help in exercise 4.4 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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