Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2014.
| Cash |
|
$50,000 |
| Administrative expenses |
|
100,000 |
| Selling expenses |
|
80,000 |
| Net sales |
|
540,000 |
| Cost of goods sold |
|
210,000 |
| Cash dividends declared (2014) |
|
20,000 |
| Cash dividends paid (2014) |
|
15,000 |
| Discontinued operations (loss before income taxes) |
|
40,000 |
| Depreciation expense, not recorded in 2013 |
|
30,000 |
| Retained earnings, December 31, 2013 |
|
90,000 |
| Effective tax rate 30% |
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(a)Compute net income for 2014.
(b) Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 10,000 shares of common stock were outstanding during 2014.
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