Question - Trayer Corporation has income from continuing operations of $269,400 for the year ended December 31, 2014. It also has the following items (before considering income taxes).
1. An extraordinary loss of $71,200.
2. A gain of $46,600 on the discontinuance of a division.
3. A correction of an error in last year's financial statements that resulted in a $20,400 understatement of 2013 net income.
Assume all items are subject to income taxes at a 35% tax rate.
Prepare an income statement, beginning with income from continuing operations.