The income statement provided does not reflect intraperiod tax allocation. Here is the original statement:**INCOME STATEMENT**For the Fiscal Year Ended March 31, 2018($ in millions)- Revenues: $1,010- Cost of goods sold: (422)- Gross profit: 588- Operating expenses: (204)- Income tax expense: (110)- Income before discontinued operations: 274- Loss from discontinued operations, net of tax: (109)- Net income: $165The company's tax rate is 40%.**Required:**Recast the income statement to reflect intraperiod tax allocation. (Loss amounts should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place—e.g., 5,500,000 should be entered as 5.5.)**Template for Recasted Income Statement:****Income Statement**For the fiscal year ended March 31, 2018($ in millions)- [Blank Line]- [Blank Line]- Gross profit (loss): [Blank]- Operating expenses: [Blank]- Income from continuing operations before income taxes: [Blank]- Income before discontinued operations: [Blank]- [Blank Line]- Net income (loss): [Blank]This template implies that you will need to adjust the figures to incorporate intraperiod tax allocation adjustments. The challenge is correctly recalculating these values based on the tax rate and providing them in a completed format.

Net income tax= Tax on profit from operation-Tax on loss from operation

The following income statement does not reflect intraperiod tax allocation. INCOME STATEMENT For the Fiscal Year Ended March 31, 2018 ($ in millions) Revenues $1,010 Cost of goods sold Gross profit Operating expenses |(422) 588 (204) (110) Income tax expense Income before discontinued operations Loss from discontinued operations, net of tax 274 |(109) Net income $ 165 The company's tax rate is 40%. Required: Recast the income statement to reflect intraperiod tax allocation. (Loss amounts should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

The following income statement does not reflect intraperiod tax allocation. INCOME STATEMENT For the Fiscal Year Ended March 31, 2018 ($ in millions) Revenues $1,010 Cost of goods sold Gross profit Operating expenses |(422) 588 (204) (110) Income tax expense Income before discontinued operations Loss from discontinued operations, net of tax 274 |(109) Net income $ 165 The company's tax rate is 40%. Required: Recast the income statement to reflect intraperiod tax allocation. (Loss amounts should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

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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