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Problem 2. Income Statement (14 marks) Wade NV has 150,000 ordinary shares outstanding. In 2022,...

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Problem 2. Income Statement (14 marks) Wade NV has 150,000 ordinary shares outstanding. In 2022, the company reports income before income tax of 1,210,000. Additional transactions not considered in the C1,210,000 are as follows. 1. In 2022, Wade NV sold equipment for 40.000. The machine had originally cost 80,000 and had accumulated depreciation of 30,000. 2. The company discontinued operations of one of its subsidiaries during the current year at a loss of 190.000 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was 90,000 before taxes; the loss from disposal of the subsidiary was 100,000 before taxes. 3. An internal audit discovered that amortization of intangible assets was understated by 35.000 (net of tax) in a prior period. The amount was. charged against retained earnings. 4. The company had a gain of 125,000 on the condemnation of much of its property. Instructions Analyze the above information and prepare an income statement for the year 2022, starting with income before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 20% on all items.)

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