70.2K

Verified Solution

Link Copied!

Required information

Problem 17-6AA (Algo) Income statement computations and format LO A2

Skip to question

[The following information applies to the questions displayed below.] Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Assume that the companys income tax rate is 30% for all items.

		Debit	Credit
a.	Interest revenue		$ 16,000
b.	Depreciation expenseEquipment	$ 36,000
c.	Loss on sale of equipment	27,850
d.	Accounts payable		46,000
e.	Other operating expenses	108,400
f.	Accumulated depreciationEquipment		73,600
g.	Gain from settlement of lawsuit		46,000
h.	Accumulated depreciationBuildings		178,500
i.	Loss from operating a discontinued segment (pretax)	20,250
j.	Gain on insurance recovery of tornado damage		31,120
k.	Net sales		1,018,500
l.	Depreciation expenseBuildings	54,000
m.	Correction of overstatement of prior years sales (pretax)	18,000
n.	Gain on sale of discontinued segments assets (pretax)		44,000
o.	Loss from settlement of lawsuit	25,750
p.	Income tax expense	?
q.	Cost of goods sold	502,500

rev: 09_09_2021_QC_CDR-376

Problem 17-6AA (Algo) Part 3

3. What is the total amount of after-tax income (loss) associated with the discontinued segment? 4. What is the amount of net income for the year?

Any help would be appreciated

Answer & Explanation Solved by verified expert

See Answer