Urgent Accounting questions about corporation's net income and comprehensive income?
Urgent Accounting questions about corporation's net income and comprehensive income?
-A corporation shows income from continuing operations of $175,000. It has an extraordinary gain of $50,000, and its tax rate is 30%. What is the corporation's net income?
Answers:
OC: 175,000+ [50,000 - (50,000*30%)]
2011-02-03 22:33:15
2011-02-03 22:33:15
Chosen Answer
Sandy: Assuming the $175,000 is pre-tax, you'll have Income from continuing operations before income taxes $175,000 Income taxes .......... .......... .......... .......... .......... .......... ......($ 52,500) Income from continuing operations .......... .......... .......... ... $122,500 Extraordinary item ... Gain from (whatever) .......... .......... $50,000 ... Income tax on extraordinary gain . $15,000 .......... .......... .......... .......... .......... ....... ------------ ... Extraordinary gain, net of tax .......... .......... .......... .......... $ 35,000 Net income .......... .......... .......... .......... .......... .......... .......... $157,500 If the $175,000 is net of tax, then you'll have: Income from continuing operations .......... .......... .......... ... $175,000 Extraordinary item ... Gain from (whatever) .......... .......... $50,000 ... Income tax on extraordinary gain . $15,000 .......... .......... .......... .......... .......... ....... ------------ ... Extraordinary gain, net of tax .......... .......... .......... .......... $ 35,000 Net income .......... .......... .......... .......... .......... .......... .......... $210,000
2011-02-04 04:07:25
Sandy: Assuming the $175,000 is pre-tax, you'll have Income from continuing operations before income taxes $175,000 Income taxes .......... .......... .......... .......... .......... .......... ......($ 52,500) Income from continuing operations .......... .......... .......... ... $122,500 Extraordinary item ... Gain from (whatever) .......... .......... $50,000 ... Income tax on extraordinary gain . $15,000 .......... .......... .......... .......... .......... ....... ------------ ... Extraordinary gain, net of tax .......... .......... .......... .......... $ 35,000 Net income .......... .......... .......... .......... .......... .......... .......... $157,500 If the $175,000 is net of tax, then you'll have: Income from continuing operations .......... .......... .......... ... $175,000 Extraordinary item ... Gain from (whatever) .......... .......... $50,000 ... Income tax on extraordinary gain . $15,000 .......... .......... .......... .......... .......... ....... ------------ ... Extraordinary gain, net of tax .......... .......... .......... .......... $ 35,000 Net income .......... .......... .......... .......... .......... .......... .......... $210,000
2011-02-04 04:07:25