The following are partial income statement account balances taken from the December 31, 2024, year-end trial balance of White and Sons, Incorporated: estructuring costs, $440,000; interest revenue, $54,000; before-tax loss on liscontinued operations, $540,000; and loss on sale of investments, $64,000. ncome tax expense has not yet been recorded. The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with $870,0 come from continuing operations before income taxes. Include appropriate E lisclosures. The company had 100,000 shares of common stock outstanding hroughout the year. Note: Loss amounts should be indicated with a minus sign. Round "EPS" answers to 2 decimal places. WHITE AND SONS, INCORPORATED Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations before income taxes $ Income tax expense Income from continuing operations Loss on discontinued operations Earnings per share: Income from continuing operations Loss on discontinued operations Net income $ 870,000 217,500 652,500 405,000 2.47

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.