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Canton Corporation reported the following items in its adjusted trial balance for the year ended December 31, 2016:

Income from continuing operations before income taxes $110,000
Gain on disposal of discontinued component 28,000
Loss from operations of discontinued component (50,000 )

Canton is subject to a 30% tax rate.

Required:

Prepare the December 31, 2016, income statement for Canton Corporation, starting with income from continuing operations before income taxes.

Respuesta :

hyderali230

Answer:

                                            Canton Corporation

                         Income Statement for December 31, 2016

                                                                                                        $

income from continuing operations before income taxes     110,000

Less: Income Tax 30%                                                              38,500

Income from continuing operations                                        71,500

Gain on disposal of discontinued component          28,000

Tax on disposal of discontinued component             (8,400)

Loss from operations of discontinued component (50,000)

Net loss from discontinue operations                                     (30400)

Total Comprehensive Income                                                   41,100

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