Windsor Corp. has 149,520 shares of common stock outstanding. In 2020, the company reports income from continuing operations before income tax of $1,229,200. Additional transactions not considered in the $1,229,200 are as follows. In 2020, Windsor Corp. sold equipment for $36,200. The machine had originally cost $83,500 and had accumulated depreciation of $31,600. The gain or loss is considered non-recurring. 1. 2. The company discontinucd operations of one of its subsidiaries during the current year al a loss of $194,300 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $91,600 before taxes; the loss from disposal of the subsidiary was $102,700 before taxes. An internal audit discovered that arnortization of intangible assets was understated by $38,100 (net of tax) in a prior period. The amount was charged against retained earnings. 3. 4. The company recorded a non-recurrina gain of $129,900 on the condemnation of some of its property (induded in the $1,229,200). Analyze the above information and prepare an income statement for the year 2020, starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 19% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, e.g. 1.47.)
Windsor Corp. has 149,520 shares of common stock outstanding. In 2020, the company reports income from continuing operations before income tax of $1,229,200. Additional transactions not considered in the $1,229,200 are as follows. In 2020, Windsor Corp. sold equipment for $36,200. The machine had originally cost $83,500 and had accumulated depreciation of $31,600. The gain or loss is considered non-recurring. 1. 2. The company discontinucd operations of one of its subsidiaries during the current year al a loss of $194,300 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $91,600 before taxes; the loss from disposal of the subsidiary was $102,700 before taxes. An internal audit discovered that arnortization of intangible assets was understated by $38,100 (net of tax) in a prior period. The amount was charged against retained earnings. 3. 4. The company recorded a non-recurrina gain of $129,900 on the condemnation of some of its property (induded in the $1,229,200). Analyze the above information and prepare an income statement for the year 2020, starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 19% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, e.g. 1.47.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Windsor Corp. has 149,520 shares of common stock outstanding. In 2020, the company reports income from continuing operations before income tax of $1,229,200. Additional
transactions not considered in the $1,229,200 are as follows.
In 2020, Windsor Corp. sold equipment for $36,200. The machine had originally cost $83,500 and had accumulated depreciation of $31,600. The gain or loss is considered
non-recurring.
1.
2.
The company discontinucd operations of one of its subsidiaries during the current year al a loss of $194,300 before taxes. Assume that this transaction meets the criteria for
discontinued operations. The loss from operations of the discontinued subsidiary was $91,600 before taxes; the loss from disposal of the subsidiary was $102,700 before taxes.
An internal audit discovered that arnortization of intangible assets was understated by $38,100 (net of tax) in a prior period. The amount was charged against retained
earnings.
3.
4.
The company recorded a non-recurrina gain of $129,900 on the condemnation of some of its property (induded in the $1,229,200).
Analyze the above information and prepare an income statement for the year 2020, starting with income from continuing operations before income tax. Compute earnings per share
as it should be shown on the face of the income statement. (Assume a total effective tax rate of 19% on all items, unless otherwise indicated.) (Round earnings per share to 2
decimal places, e.g. 1.47.)
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