Crane Corp. has 149,580 shares of common stock outstanding. In 2020, the company reports income from continuing operations before income tax of $1,230,600. Additional transactions not considered in the $1,230,600 are as follows. 1. 2. 3. 4. In 2020, Crane Corp. sold equipment for $36,200. The machine had originally cost $81,600 and had accumulated depreciation of $33,000. The gain or loss is considered non-recurring. The company discontinued operations of one of its subsidiaries during the current year at a loss of $195,900 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $92,300 before taxes; the loss from disposal of the subsidiary was $103,600 before taxes. An internal audit discovered that amortization of intangible assets was understated by $37,400 (net of tax) in a prior period. The amount was charged against retained earnings. The company recorded a non-recurring gain of $126,000 on the condemnation of some of its property (included in the $1,230,600). Analyze the above information and prepare an income statement for the year 2020, starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 19% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, eg. 1.47.) Income From Continuing Operations Before Income Tax Income Tax CRANE CORP. Income Statement (Partial) For the Year Ended December 31, 2020
Crane Corp. has 149,580 shares of common stock outstanding. In 2020, the company reports income from continuing operations before income tax of $1,230,600. Additional transactions not considered in the $1,230,600 are as follows. 1. 2. 3. 4. In 2020, Crane Corp. sold equipment for $36,200. The machine had originally cost $81,600 and had accumulated depreciation of $33,000. The gain or loss is considered non-recurring. The company discontinued operations of one of its subsidiaries during the current year at a loss of $195,900 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $92,300 before taxes; the loss from disposal of the subsidiary was $103,600 before taxes. An internal audit discovered that amortization of intangible assets was understated by $37,400 (net of tax) in a prior period. The amount was charged against retained earnings. The company recorded a non-recurring gain of $126,000 on the condemnation of some of its property (included in the $1,230,600). Analyze the above information and prepare an income statement for the year 2020, starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 19% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, eg. 1.47.) Income From Continuing Operations Before Income Tax Income Tax CRANE CORP. Income Statement (Partial) For the Year Ended December 31, 2020
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 13P
Related questions
Question
ksk.1
Transcribed Image Text:Crane Corp. has 149,580 shares of common stock outstanding. In 2020, the company reports income from continuing operations
before income tax of $1,230,600. Additional transactions not considered in the $1,230,600 are as follows.
1.
2.
3.
4.
In 2020, Crane Corp. sold equipment for $36,200. The machine had originally cost $81,600 and had accumulated
depreciation of $33,000. The gain or loss is considered non-recurring.
The company discontinued operations of one of its subsidiaries during the current year at a loss of $195,900 before taxes.
Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued
subsidiary was $92,300 before taxes; the loss from disposal of the subsidiary was $103,600 before taxes.
An internal audit discovered that amortization of intangible assets was understated by $37,400 (net of tax) in a prior
period. The amount was charged against retained earnings.
The company recorded a non-recurring gain of $126,000 on the condemnation of some of its property (included in the
$1,230,600).
Analyze the above information and prepare an income statement for the year 2020, starting with income from continuing
operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a
total effective tax rate of 19% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, eg. 1.47.)
Income From Continuing Operations Before Income Tax
Income Tax
CRANE CORP.
Income Statement (Partial)
For the Year Ended December 31, 2020
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning