The following are partial income statement account balances taken from the December 31, 2021, year-end trial balance of White and Sons, Inc.: restructuring costs, $470,000; interest revenue, $57,000; before-tax loss on discontinued operations, $570,000; and loss on sale of investments, $67,000. Income tax expense has not yet been recorded. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with $885,000 income from continuing operations before income taxes. Include appropriate EPS disclosures. The company had 100,000 shares of common stock outstanding throughout the year. (Amounts to be deducted should be indicated with a minus sign. Round "EPS" answers to 2 decimal places.)

Question

Freddy Goodman

Business

8 December, 18:58

The following are partial income statement account balances taken from the December 31, 2021, year-end trial balance of White and Sons, Inc.: restructuring costs, $470,000; interest revenue, $57,000; before-tax loss on discontinued operations, $570,000; and loss on sale of investments, $67,000. Income tax expense has not yet been recorded. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with $885,000 income from continuing operations before income taxes. Include appropriate EPS disclosures. The company had 100,000 shares of common stock outstanding throughout the year. (Amounts to be deducted should be indicated with a minus sign. Round "EPS" answers to 2 decimal places.)

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Kent · Answer 1

Answer and Explanation:

White and Sons, Inc.

Income Statement (lower portion)

For the Year Ended December 31, 2021

Income from continuing operations before income taxes $885,000

Less: Income tax expense (25%) - $221,250

Net income from continuing operations $663,750

Discounted operations:

Loss on discounted operations (Net of tax) - $427,500

[570,000 - (570,000 x 25%) ]

Net Income $236,250

Earnings Per Share:

Income from continuing operations $6.64

($663,750 / 100,000)

Loss on discounted operations - $4.23

($427,500 / 100,000)

Net Income $2.41