Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2020. Cash $ 50,000 Administrative expenses 100,000 Selling expenses 80,000 Net sales 540,000 Cost of goods sold 210,000 Cash dividends declared (2020) 20,000 Cash dividends paid (2020) 15,000 Discontinued operations (loss before income taxes) 40,000 Depreciation expense, not recorded in 2019 30,000 Retained earnings, December 31, 2019 90,000 Effective tax rate 20% Instructions a. Compute net income for 2020. b. Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 10,000 shares of common stock were outstanding during 2020.
Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2020. Cash $ 50,000 Administrative expenses 100,000 Selling expenses 80,000 Net sales 540,000 Cost of goods sold 210,000 Cash dividends declared (2020) 20,000 Cash dividends paid (2020) 15,000 Discontinued operations (loss before income taxes) 40,000 Depreciation expense, not recorded in 2019 30,000 Retained earnings, December 31, 2019 90,000 Effective tax rate 20% Instructions a. Compute net income for 2020. b. Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 10,000 shares of common stock were outstanding during 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2020.
| Cash | $ 50,000 |
| Administrative expenses | 100,000 |
| Selling expenses | 80,000 |
| Net sales | 540,000 |
| Cost of goods sold | 210,000 |
| Cash dividends declared (2020) | 20,000 |
| Cash dividends paid (2020) | 15,000 |
| Discontinued operations (loss before income taxes) | 40,000 |
| 30,000 | |
| 90,000 | |
| Effective tax rate 20% |
Instructions
a. Compute net income for 2020.
b. Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 10,000 shares of common stock were outstanding during 2020.
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