Sales revenue Dividend revenue Gain on recovery of earthquake loss (unusual) Unrealized holding gain on FV-OCI equity investments Less: Selling expenses Cost of goods sold Advertising expense Loss on inventory due to decline in net realizable value Loss on discontinued operations Administrative expenses Income before income tax Pronghorn Corporation Income Statement Income tax expense Net income $ 120,000 505,000 13,000 34,000 48,000 72,000 $ 840,000 $ 33,000 26,000 6,000 905,000 792,000 113,000 22,600 90,400 Pronghorn had 100,000 common shares outstanding during the year and has an effective tax rate of 20%. Gains/losses on FV-OCI equity investments are not recycled through net income.

Sales revenue Dividend revenue Gain on recovery of earthquake loss (unusual) Unrealized holding gain on FV-OCI equity investments Less: Selling expenses Cost of goods sold Advertising expense Loss on inventory due to decline in net realizable value Loss on discontinued operations Administrative expenses Income before income tax Pronghorn Corporation Income Statement Income tax expense Net income $ 120,000 505,000 13,000 34,000 48,000 72,000 $ 840,000 $ 33,000 26,000 6,000 905,000 792,000 113,000 22,600 90,400 Pronghorn had 100,000 common shares outstanding during the year and has an effective tax rate of 20%. Gains/losses on FV-OCI equity investments are not recycled through net income.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 11C

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