Prepare the bottom portion of Sheridan's 2021 income statement, beginning with “Income from continuing operations beforeincome taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Sheridan CorporationIncome Statement (Partial)For the Year Ended December 31, 2021ncome from Continuing Operations before Income Taxes1164000ncome Tax ExpenseCurrent$Deferred189000ncome from Continuing OperationsGain on Discontinued Operations195000Less v:-39000i156000let Income / (Loss)$%24%24>> The following information has been obtained for Sheridan Corporation.1.Prior to 2020, taxable income and pretax financial income were identical.2.Pretax financial income is $1,634,000 in 2020 and $1,359,000 in 2021.On January 1, 2020, equipment costing $1,260,000 is purchased. It is to be depreciated on a straight-line basis over 5 yearsfor tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purposes, asdiscussed in Appendix 11A.)3.4.Interest of $57,000 was earned on tax-exempt municipal obligations in 2021.5.Included in 2021 pretax financial income is a gain on discontinued operations of $195,000, which is fully taxable.6.The tax rate is 20% for all periods.7.Taxable income is expected in all future years.

Statement of income shows all the income(s) earned by the organization. There are certain ways for…

Prepare the bottom portion of Sheridan's 2021 income statement, beginning with “Income from continuing operations before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Prepare the bottom portion of Sheridan's 2021 income statement, beginning with “Income from continuing operations before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

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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