Niler Corporation reported the following after-tax information for its current fiscal year: $35,000 income from continuing operations, $8,400 income from operations of discontinued Line C, and $12,500 loss on disposal of Line C.

Starting with income from continuing operations, prepare a partial income statement for Niler for the current year. Ignore earnings per share.

Question

Lilianna Cain

Business

4 January, 00:34

Niler Corporation reported the following after-tax information for its current fiscal year: $35,000 income from continuing operations, $8,400 income from operations of discontinued Line C, and $12,500 loss on disposal of Line C.

Starting with income from continuing operations, prepare a partial income statement for Niler for the current year. Ignore earnings per share.

+5

Answers (1)

Know the Answer?

Elliot · Answer 1

The net income for Niler Corporation for the current year is $30,900.

Explanation:

When there is a discontinued operation, the income from the discontinued operation is added to the income from continuing operations while the loss on disposal of the same operation is added to obtain the net income for the company. This can be done as follows for this question:

Niler Corporation

Partial Income Statement

Details $

Income from continuing operations 35,000

income from operations of discontinued Line C 8,400

Loss on disposal of Line C (12,500)

Net income 30,900

Therefore, the net income for Niler Corporation for the current year is $30,900.