Current Attempt in Progress Skysong Corp. has 149.550 shares of common stock outstanding In 2025, the company reports income from continuing operations before income tax of $1.220,400. Additional transactions not considered in the $1,220,400 are as follows. 1. 2. 3. 4. In 2025, Skysong Corp. sold equipment for $37,000. The machine had originally cost $84,800 and had accumulated depreciation of $32,200. The gain or loss is considered non-recurring. The company discontinued operations of one of its subsidiaries during the current year at a loss of $191,500 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $94,300 before taxes; the loss from disposal of the subsidiary was $97.200 before taxes. An internal audit discovered that amortization of intangible assets was understated by $36,000 (net of tax) in a prior period. The amount was charged against retained earnings. The company recorded a non-recurring gain of $126,200 on the condemnation of some of its property (included in the $1.220,400) Analyze the above information and prepare an income statement for the year 2025, starting with income from continuing operations 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 19% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, e.g. 1.47.) SKYSONG CORP. Income Statement (Partial)
Current Attempt in Progress Skysong Corp. has 149.550 shares of common stock outstanding In 2025, the company reports income from continuing operations before income tax of $1.220,400. Additional transactions not considered in the $1,220,400 are as follows. 1. 2. 3. 4. In 2025, Skysong Corp. sold equipment for $37,000. The machine had originally cost $84,800 and had accumulated depreciation of $32,200. The gain or loss is considered non-recurring. The company discontinued operations of one of its subsidiaries during the current year at a loss of $191,500 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $94,300 before taxes; the loss from disposal of the subsidiary was $97.200 before taxes. An internal audit discovered that amortization of intangible assets was understated by $36,000 (net of tax) in a prior period. The amount was charged against retained earnings. The company recorded a non-recurring gain of $126,200 on the condemnation of some of its property (included in the $1.220,400) Analyze the above information and prepare an income statement for the year 2025, starting with income from continuing operations 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 19% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, e.g. 1.47.) SKYSONG CORP. Income Statement (Partial)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 23E
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Transcribed Image Text:Current Attempt in Progress
Skysong Corp. has 149.550 shares of common stock outstanding In 2025, the company reports income from continuing operations
before income tax of $1.220,400. Additional transactions not considered in the $1,220,400 are as follows.
1.
2.
3.
4.
In 2025, Skysong Corp. sold equipment for $37,000. The machine had originally cost $84,800 and had accumulated
depreciation of $32.200. The gain or loss is considered non-recurring.
The company discontinued operations of one of its subsidiaries during the current year at a loss of $191,500 before taxes.
Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued
subsidiary was $94,300 before taxes; the loss from disposal of the subsidiary was $97.200 before taxes
An internal audit discovered that amortization of intangible assets was understated by $36,000 (net of tax) in a prior period.
The amount was charged against retained earnings.
The company recorded a non-recurring gain of $126,200 on the condemnation of some of its property (included in the
$1.220,400).
Analyze the above information and prepare an income statement for the year 2025, starting with income from continuing operations
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 19% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, e.g. 1.47.)
SKYSONG CORP.
Income Statement (Partial)
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