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Question 2 Wilcox Corporation had income from continuing operations of $771,000 (after taxes) in 2014. The company had the following information. Assume the calculation of income from continuing operations is correct. Include presentation of earnings per share. 1. In 2014, Wilcox experienced an uninsured earthquake loss in the amount of $290,000. This event has an applicable tax benefit of $78,000. 2. A machine was sold for $140,000 cash during the year at a time when its book value was $110,000. (Depreciation has been properly recorded.) The company regularly sells machinery of this type. 3. Wilcox decided to discontinue its stereo division in 2014. During the current year, the loss on the disposal of this component of the business was $180,000. The expected tax rate is 35%. Present in good form the income statement of Wilcox Corporation for 2014 starting from "income from continuing operations." Assume 200,000 shares of common stock were outstanding during the year. Round EPS information to two decimal places. Income from continuing operations $771,000

Question 2 Wilcox Corporation had income from continuing operations of $771,000 (after taxes) in 2014. The company had the following information. Assume the calculation of income from continuing operations is correct. Include presentation of earnings per share. 1. In 2014, Wilcox experienced an uninsured earthquake loss in the amount of $290,000. This event has an applicable tax benefit of $78,000. 2. A machine was sold for $140,000 cash during the year at a time when its book value was $110,000. (Depreciation has been properly recorded.) The company regularly sells machinery of this type. 3. Wilcox decided to discontinue its stereo division in 2014. During the current year, the loss on the disposal of this component of the business was $180,000. The expected tax rate is 35%. Present in good form the income statement of Wilcox Corporation for 2014 starting from "income from continuing operations." Assume 200,000 shares of common stock were outstanding during the year. Round EPS information to two decimal places. Income from continuing operations $771,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 2 Wilcox Corporation had income from continuing operations of $771,000 (after taxes) in 2014. The company had the following information. Assume the calculation of income from continuing operations is correct. Include presentation of earnings per share. 1. In 2014, Wilcox experienced an uninsured earthquake loss in the amount of $290,000. This event has an applicable tax benefit of $78,000. 2. A machine was sold for $140,000 cash during the year at a time when its book value was $110,000. (Depreciation has been properly recorded.) The company regularly sells machinery of this type. 3. Wilcox decided to discontinue its stereo division in 2014. During the current year, the loss on the disposal of this component of the business was $180,000. The expected tax rate is 35%. Present in good form the income statement of Wilcox Corporation for 2014 starting from "income from continuing operations." Assume 200,000 shares of common stock were outstanding during the year. Round EPS information to two decimal places. Income from continuing operations Net income $771,000
Transcribed Image Text:Question 2 Wilcox Corporation had income from continuing operations of $771,000 (after taxes) in 2014. The company had the following information. Assume the calculation of income from continuing operations is correct. Include presentation of earnings per share. 1. In 2014, Wilcox experienced an uninsured earthquake loss in the amount of $290,000. This event has an applicable tax benefit of $78,000. 2. A machine was sold for $140,000 cash during the year at a time when its book value was $110,000. (Depreciation has been properly recorded.) The company regularly sells machinery of this type. 3. Wilcox decided to discontinue its stereo division in 2014. During the current year, the loss on the disposal of this component of the business was $180,000. The expected tax rate is 35%. Present in good form the income statement of Wilcox Corporation for 2014 starting from "income from continuing operations." Assume 200,000 shares of common stock were outstanding during the year. Round EPS information to two decimal places. Income from continuing operations Net income $771,000
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