Income Statement: This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenues over expenses. Discontinued operation: Discontinued operation takes place when the part of the business has been sold or terminated. Income or loss from discontinued operation would be reported separately in the income statement since that particular business or operation will not continue in the future. Restructuring costs: Restructuring cost is the expense incurred during the closing down or relocation of facilities or reducing operations of the company. These costs are recognized during the period of closing down or during the period of removal of cost obligation in which it is actually incurred. The restructuring costs are reported as operating expense in the income statement. To prepare: 2016 income statement for ECB Incorporation.

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Chapter 4, Problem 4.7E

To determine

Income Statement:

This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenues over expenses.

Discontinued operation:

Discontinued operation takes place when the part of the business has been sold or terminated. Income or loss from discontinued operation would be reported separately in the income statement since that particular business or operation will not continue in the future.

Restructuring costs:

Restructuring cost is the expense incurred during the closing down or relocation of facilities or reducing operations of the company. These costs are recognized during the period of closing down or during the period of removal of cost obligation in which it is actually incurred. The restructuring costs are reported as operating expense in the income statement.

To prepare: 2016 income statement for ECB Incorporation.

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