Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-endDecember 31 follow. Assume that the company's income tax rate is 40% for all items.DebitCredita. Interest revenueb. Depreciation expense-EquipmentLoss on sale of equipmentC.d. Accounts payablee. Other operating expensesf. Accumulated depreciation-EquipmentGain from settlement of lawsuith. Accumulated depreciation-BuildingsLoss from operating a discontinued segment (pretax)Gain on insurance recovery of tornado damageNet salesg.i.j.k.1. Depreciation expense-Buildingsm. Correction of overstatement of prior year's sales (pretax)Gain on sale of discontinued segment's assets (pretax)Loss from settlement of lawsuitn.O.p.q.Income tax expenseCost of goods sold$ 34,40026,250106,80018,65052,40016,40024,150?486,500$ 14,40044,40072,00044,400175,30029,5201,002,50036,000Problem 17-6AA (Algo) Part 22a. What is the amount of income from continuing operations before income taxes?2b. What is the amount of the income tax expense?2c. What is the amount of income from continuing operations?

Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Assume that the company's income tax rate is 40% for all items. Debit Credit $14,400 a. Interest revenue b. Depreciation expense-Equipment C. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segment (pretax) j. Gain on insurance recovery of tornado damage Net sales k. 1. Depreciation expense-Buildings Correction of overstatement of prior year's sales (pretax) Gain on sale of discontinued segment's assets (pretax) Loss from settlement of lawsuit m. n. O. Gain from settlement of lawsuit p. q. Income tax expense Cost of goods sold $34,400 26,250 106,800 18,650 52,400 16,400 24,150 ? 486,500 44,400 72,000 44,400 175,300 29,520 1,002,500 36,000 Problem 17-6AA (Algo) Part 2 2a. What is the amount of income from continuing operations before income taxes? 2b. What is the amount of the income tax expense? 2c. What is the amount of income from continuing operations?

Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Assume that the company's income tax rate is 40% for all items. Debit Credit $14,400 a. Interest revenue b. Depreciation expense-Equipment C. Loss on sale of equipment d. Accounts payable e. Other operating expenses f. Accumulated depreciation-Equipment g. h. Accumulated depreciation-Buildings i. Loss from operating a discontinued segment (pretax) j. Gain on insurance recovery of tornado damage Net sales k. 1. Depreciation expense-Buildings Correction of overstatement of prior year's sales (pretax) Gain on sale of discontinued segment's assets (pretax) Loss from settlement of lawsuit m. n. O. Gain from settlement of lawsuit p. q. Income tax expense Cost of goods sold $34,400 26,250 106,800 18,650 52,400 16,400 24,150 ? 486,500 44,400 72,000 44,400 175,300 29,520 1,002,500 36,000 Problem 17-6AA (Algo) Part 2 2a. What is the amount of income from continuing operations before income taxes? 2b. What is the amount of the income tax expense? 2c. What is the amount of income from continuing operations?

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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Income from Continuing Operations