Why analysts might make an adjustment


Company reported net income of $500,000 in 2011. During 2011 Company reported a loss of $50,000 from a peripheral activity. The loss was included as part of income from continuing operations. Assuming that the loss is a one-time event and that Company has an effective tax rate of 35% calculate Company's adjusted net income. Show all of your calculations for credit.Also why analysts might make an adjustment of this type.

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Accounting Basics: Why analysts might make an adjustment
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