Wilcox Corporation had income from continuing operations of $750,000 (after taxes) in 2014. In addition, the following information, which has not been considered, is as follows.
1. In 2014, Wilcox experienced an uninsured earthquake loss in the amount of $290,000.
2. A machine was sold for $140,000 cash during the year at a time when its book value was $110,000. (Depreciation has been properly recorded.) The company often sells machinery of this type.
3. Wilcox decided to discontinue its stereo division in 2014. During the current year, the loss on the disposal of this component of the business was $180,000 less applicable taxes.
Instructions
Present in good form the income statement of Wilcox Corporation for 2014 starting with "income from continuing operations." Assume that Wilcox's tax rate is 30% and 200,000 shares of common stock were outstanding during the year.