RST Company reported the following 2021 information: Sales $600,000 CGS 320,000 Unearned revenue 18,000 Dividends declared 25,000 Salary expense 75,000 Rent expense 35,000 Depreciation expense 15,000 Unrealized gain, AFS 10,000 Gain from sale of trading securities $12,000 Loss from hurricane damage $20,000 Loss from discontinued operations $40,000 Income tax rate 20% How much will RST report as 2021 income from continuing operations (after tax)? a) $117,600 b) $112,000 c) $125,600 d) $108,000 How much will RST report as 2021 net income? a) $77,600 b) $107,000 c) $115,000 d) $85,600 How much will RST report as 2021 other comprehensive income? a) $10,000 b) $8,000 c) $93,600 d) $95,600

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
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...
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RST Company reported the following 2021 information: Sales $600,000 CGS 320,000 Unearned revenue 18,000 Dividends declared 25,000 Salary expense 75,000 Rent expense 35,000 Depreciation expense 15,000 Unrealized gain, AFS 10,000 Gain from sale of trading securities $12,000 Loss from hurricane damage $20,000 Loss from discontinued operations $40,000 Income tax rate 20%

How much will RST report as 2021 income from continuing operations (after tax)?

a) $117,600 b) $112,000 c) $125,600 d) $108,000

How much will RST report as 2021 net income?

a) $77,600 b) $107,000 c) $115,000 d) $85,600

How much will RST report as 2021 other comprehensive income?

a) $10,000

b) $8,000

c) $93,600

d) $95,600

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