For the year ending December Olivo Corporation had income from continuing operations before taxes of $ before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material.
In November Olivo sold its PizzaPasta restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May The income from operations of the chain from January through November was $ and the loss on sale of the chains assets was $
In Olivo sold one of its six factories for $ At the time of the sale, the factory had a book value of $ The factory was not considered a component of the entity.
In Olivos accountant omitted the annual adjustment for patent amortization expense of $ The error was not discovered until December
Required:
Prepare Olivos income statement, beginning with income from continuing operations before taxes, for the year ended December Assume an income tax rate of Ignore EPS disclosures.
