Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar...
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Accounting
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
$ 15,200
b.
Depreciation expenseEquipment
$ 35,200
c.
Loss on sale of equipment
27,050
d.
Accounts payable
45,200
e.
Other operating expenses
107,600
f.
Accumulated depreciationEquipment
72,800
g.
Gain from settlement of lawsuit
45,200
h.
Accumulated depreciationBuildings
176,900
i.
Loss from operating a discontinued segment (pretax)
19,450
j.
Gain on insurance recovery of tornado damage
30,320
k.
Net sales
1,010,500
l.
Depreciation expenseBuildings
53,200
m.
Correction of overstatement of prior years sales (pretax)
17,200
n.
Gain on sale of discontinued segments assets (pretax)
40,000
o.
Loss from settlement of lawsuit
24,950
p.
Income tax expense
?
q.
Cost of goods sold
494,500
2a. What is the amount of income from continuing operations before income taxes?
2b. What is the amount of the income tax expense?
2c. What is the amount of income from continuing operations?
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