Kingbird Inc. reported income from continuing operations before taxes during 2017 of $2,250,000. Additional transactions occurring in 2017 but not considered in the $2,250,000 are as follows. 1. A gain of $125,000 (pretax) as a result of selling securities from its investment portfolio. 2. A $27,000 loss before taxes as a result of operating the discontinued clothing division during 2017. 3. A loss of $78,000 before taxes as a result of disposing of its clothing division. Assume that this transaction meets the criteria for discontinued operations. 4. An uninsured $122,000 loss due to a fire. 5. At the beginning of 2015, the corporation purchased a machine for $260,000 (salvage value of $20,000) that had a useful life of 10 years. The bookkeeper used straight-line depreciation for 2015, 2016, and 2017, but failed to deduct the salvage value in computing the depreciation base. 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 2015 income by $64,000 and decrease 2016 income by $10,000 before taxes. The FIFO method has been used for 2017. Prepare an income statement for the year 2017 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 450,000 shares. (Assume a tax rate of 30% on all items.) (Round earnings per share to 2 decimal places, e.g. 1.48 and all other answers to 0 decimal places, e.g. 5,275.) KINGBIRD INC. Income Statement (Partial) choose the accounting period select an income statement item $enter a dollar amount select an income statement item enter a dollar amount select a summarizing line for the first part enter a total amount for the first part select an opening name for section one select an income statement item $enter a dollar amount select an income statement item enter a dollar amount enter a total amount for section one select a closing name for this statement $enter a total net income or loss amount Per share of common stock: select an income statement item $enter a dollar amount select an opening section name : select an income statement item enter a dollar amount select an income statement item enter a dollar amount select a closing name for this statement

Kingbird Inc. reported income from continuing operations before taxes during 2017 of $2,250,000. Additional transactions occurring in 2017 but not considered in the $2,250,000 are as follows. 1. A gain of $125,000 (pretax) as a result of selling securities from its investment portfolio. 2. A $27,000 loss before taxes as a result of operating the discontinued clothing division during 2017. 3. A loss of $78,000 before taxes as a result of disposing of its clothing division. Assume that this transaction meets the criteria for discontinued operations. 4. An uninsured $122,000 loss due to a fire. 5. At the beginning of 2015, the corporation purchased a machine for $260,000 (salvage value of $20,000) that had a useful life of 10 years. The bookkeeper used straight-line depreciation for 2015, 2016, and 2017, but failed to deduct the salvage value in computing the depreciation base. 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 2015 income by $64,000 and decrease 2016 income by $10,000 before taxes. The FIFO method has been used for 2017. Prepare an income statement for the year 2017 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 450,000 shares. (Assume a tax rate of 30% on all items.) (Round earnings per share to 2 decimal places, e.g. 1.48 and all other answers to 0 decimal places, e.g. 5,275.) KINGBIRD INC. Income Statement (Partial) choose the accounting period select an income statement item $enter a dollar amount select an income statement item enter a dollar amount select a summarizing line for the first part enter a total amount for the first part select an opening name for section one select an income statement item $enter a dollar amount select an income statement item enter a dollar amount enter a total amount for section one select a closing name for this statement $enter a total net income or loss amount Per share of common stock: select an income statement item $enter a dollar amount select an opening section name : select an income statement item enter a dollar amount select an income statement item enter a dollar amount select a closing name for this statement

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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Kingbird Inc. reported income from continuing operations before taxes during 2017 of $2,250,000. Additional transactions occurring in 2017 but not considered in the $2,250,000 are as follows.

1.		A gain of $125,000 (pretax) as a result of selling securities from its investment portfolio.
2.		A $27,000 loss before taxes as a result of operating the discontinued clothing division during 2017.
3.		A loss of $78,000 before taxes as a result of disposing of its clothing division. Assume that this transaction meets the criteria for discontinued operations.
4.		An uninsured $122,000 loss due to a fire.
5.		At the beginning of 2015, the corporation purchased a machine for $260,000 (salvage value of $20,000) that had a useful life of 10 years. The bookkeeper used straight-line depreciation for 2015, 2016, and 2017, but failed to deduct the salvage value in computing the depreciation base.
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 2015 income by $64,000 and decrease 2016 income by $10,000 before taxes. The FIFO method has been used for 2017.

Prepare an income statement for the year 2017 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 450,000 shares. (Assume a tax rate of 30% on all items.) (Round earnings per share to 2 decimal places, e.g. 1.48 and all other answers to 0 decimal places, e.g. 5,275.)

KINGBIRD INC. Income Statement (Partial) choose the accounting period


select an income statement item

select an income statement item
				$enter a dollar amount

select a summarizing line for the first part
				enter a dollar amount

select an opening name for section one
				enter a total amount for the first part

select an income statement item

select an income statement item
		$enter a dollar amount

select a closing name for this statement
		enter a dollar amount
				enter a total amount for section one

select an income statement item
				$enter a total net income or loss amount

Per share of common stock:

select an opening section name
				$enter a dollar amount

select an income statement item
:

select an income statement item
				enter a dollar amount

select a closing name for this statement
				enter a dollar amount

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