Kagawas taxable income from the tax return


Accounting records of Kagawa Company at the end of 2009

Net sales, $660,000

Operating income (from discontinued operations), $64,000

Cost of goods sold, $370,000

Gain on sale of assets (from discontinued operations), $55,000

Operating expenses, $134,000

Flood loss, $167,000

Kagawa had 150,000 shares of common stock issued and outstanding throughout the year

Kagawa's effective tax rate is 40% and is based in an area that does not normally experience floods. Kagawa's taxable income from the tax return is $100,000.

Required: prepare an income statement for Kagawa company for 2009, including an earnings-per-share section.

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Accounting Basics: Kagawas taxable income from the tax return
Reference No:- TGS0673276

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