Question - Corpus Christi Corporation reported the following pretax (and taxable) information for 2010:
Income from continuing operations $400,000
Loss on disposal of Segment B 40,000
Extraordinary flood loss 60,000
Prior period adjustment Depreciation was understated in 2009 12,000
Gain from operations of discontinued Segment B 20,000
Income tax rate 30%
Required:
a. Prepare the lower portion of Corpus Christi's 2010 income statement, beginning with pretax income for continuing operations. (Omit the heading.)
b. Prepare Corpus Christi's 2010 statement of retained earnings, assuming that retained earnings at January 1, 2010, was $600,000 and the company paid $35,000 of dividends in 2010. (Omit the heading.)