The events and transactions of Dever Corporation for the year ending December 31, 2012, resulted in the following data.
|
Cost of goods sold
|
$2,600,000
|
|
Net sales
|
4,400,000
|
|
Other expenses and losses
|
9,600
|
|
Other revenues and gains
|
5,600
|
|
Selling and administrative expenses
|
1,100,000
|
|
Income from operations of plastics division
|
70,000
|
|
Gain from disposal of plastics division
|
500,000
|
|
Loss from tornado disaster (extraordinary loss)
|
600,000
|
Analysis reveals that:
1. All items are before the applicable income tax rate of 30%.
2. The plastics division was sold on July 1.
All operating data for the plastics division have been segregated.