Question 2 Wilcox Corporation had income from continuing operations of $771,000 (after taxes) in 2014. The company had the following information. Assume the calculation of income from continuing operations is correct. Include presentation of earnings per share. 1. In 2014, Wilcox experienced an uninsured earthquake loss in the amount of $290,000. This event has an applicable tax benefit of $78,000. 2. A machine was sold for $140,000 cash during the year at a time when its book value was $110,000. (Depreciation has been properly recorded.) The company regularly sells machinery of this type. 3. Wilcox decided to discontinue its stereo division in 2014. During the current year, the loss on the disposal of this component of the business was $180,000. The expected tax rate is 35%. Present in good form the income statement of Wilcox Corporation for 2014 starting from "income from continuing operations." Assume 200,000 shares of common stock were outstanding during the year. Round EPS information to two decimal places. Income from continuing operations $771,000

Question 2 Wilcox Corporation had income from continuing operations of $771,000 (after taxes) in 2014. The company had the following information. Assume the calculation of income from continuing operations is correct. Include presentation of earnings per share. 1. In 2014, Wilcox experienced an uninsured earthquake loss in the amount of $290,000. This event has an applicable tax benefit of $78,000. 2. A machine was sold for $140,000 cash during the year at a time when its book value was $110,000. (Depreciation has been properly recorded.) The company regularly sells machinery of this type. 3. Wilcox decided to discontinue its stereo division in 2014. During the current year, the loss on the disposal of this component of the business was $180,000. The expected tax rate is 35%. Present in good form the income statement of Wilcox Corporation for 2014 starting from "income from continuing operations." Assume 200,000 shares of common stock were outstanding during the year. Round EPS information to two decimal places. Income from continuing operations $771,000

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 5P: Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of...

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