Nash Corp, has 150.540 shares of common stock outstanding In 2025, the company reports income from continuing operations before income tax of $1,232,400. Additional transactions not considered in the $1.232.400 are as follows. 1. In 2025, Nash Corp. sold equipment for $36,400. The machine had originally cost $80,700 and had accumulated depreciation of $32,400. The gain or loss is considered non-recurring 2 The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,400 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $91,400 before taxes the loss from disposal of the subsidiary was $99,000 before taxes. 3. An Internal audit discovered that amortization of intangible assets was understated by $37,700 (net of tax) in a prior period. The amount was charged against retained earnings 4. The company recorded a non-recurring gain of $128.800 on the condemnation of some of its property (included in the $1.232,400). Analyze the above information and prepare an income statement for the year 2025, 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, e.g. 1.47.)
Nash Corp, has 150.540 shares of common stock outstanding In 2025, the company reports income from continuing operations before income tax of $1,232,400. Additional transactions not considered in the $1.232.400 are as follows. 1. In 2025, Nash Corp. sold equipment for $36,400. The machine had originally cost $80,700 and had accumulated depreciation of $32,400. The gain or loss is considered non-recurring 2 The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,400 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $91,400 before taxes the loss from disposal of the subsidiary was $99,000 before taxes. 3. An Internal audit discovered that amortization of intangible assets was understated by $37,700 (net of tax) in a prior period. The amount was charged against retained earnings 4. The company recorded a non-recurring gain of $128.800 on the condemnation of some of its property (included in the $1.232,400). Analyze the above information and prepare an income statement for the year 2025, 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, e.g. 1.47.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nash Corp. has 150.540 shares of common stock outstanding In 2025, the company reports income from continuing
operations before income tax of $1,232,400. Additional transactions not considered in the $1.232.400 are as follows.
1. In 2025, Nash Corp, sold equipment for $36,400. The machine had originally cost $80,700 and had
accumulated depreciation of $32,400. The gain or loss is considered non-recurring
2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,400
before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from
operations of the discontinued subsidiary was $91,400 before taxes: the loss from disposal of the subsidiary
was $99,000 before taxes.
3. An Internal audit discovered that amortization of intangible assets was understated by $37,700 (net of tax) in a
prior period. The amount was charged against retained earnings
4. The company recorded a non-recurring gain of $128.800 on the condemnation of some of its property
(included in the $1.232,400).
Analyze the above information and prepare an income statement for the year 2025, 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, e.g. 1.47.)
Transcribed Image Text:Income before Income Tax
Income Tax
Income from Continuing Operations
Discontinued Operations
Loss from Operations of Discontinued Subsidiary
Income Tax
Loss from Disposal of Subsidiary
Income Tax
Net income/(Loss)
Earnings per Share
Gain on Condemnation
NASH CORP.
Income Statement (Partial)
For the Year Ended December 31, 2025
Earnings per Share
91400
34732
UUUUU
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