Question - The income statement of Tawls Company for the year ended December 31, 2012, shows the following:
Revenue from sales $ 980,000
Cost of products sold 510,000
Gross profit 470,000
Operating expenses:
Selling expenses $110,000
General expenses 140,000 250,000
Operating income 220,000
Equity on earnings of nonconsolidated subsidiary 60,000
Operating income before income taxes 280,000
Taxes related to operations 100,000
Net income from operations 180,000
Extraordinary loss from flood (less applicable taxes of $50,000) (120,000)
Net income-noncontrolling interest (40,000)
Net income $ 20,000
a. Compute the net earnings remaining after removing nonrecurring items.
b. Determine the earnings from the nonconsolidated subsidiary.
c. For the subsidiary that was not consolidated, what amount of income would have been included if this subsidiary had been consolidated?
d. What earnings relate to minority shareholders of a subsidiary that was consolidated?
e. Determine the total tax amount.