Determine the operation income before income taxes


Income from continuing operations

Response to the following problem:

The following are partial income statement account balances taken from the December 31, 2016, year-end trial balance of White and Sons, Inc.: restructuring costs, $300,000; interest revenue, $40,000; before-tax loss on discontinued operations, $400,000; and loss on sale of investments, $50,000. Income tax expense has not yet been recorded. The income tax rate is 40%.

Prepare the lower portion of the 2016 income statement beginning with $850,000 income from continuing operations before income taxes.

Include appropriate EPS disclosures.

The company had 100,000 shares of common stock outstanding throughout the year.

 

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Financial Accounting: Determine the operation income before income taxes
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