Canton Corporation reported the following items in its adjusted trial balance for the year ended December 31, 2016:

Income from continuing operations before income taxes $110,000

Gain on disposal of discontinued component 28,000

Loss from operations of discontinued component (50,000)

Canton is subject to a 30% tax rate.

Required:

Prepare the December 31, 2016, income statement for Canton Corporation, starting with income from continuing operations before income taxes.

Question

Kathy Gallegos

Business

24 January, 15:20

Canton Corporation reported the following items in its adjusted trial balance for the year ended December 31, 2016:

Income from continuing operations before income taxes $110,000

Gain on disposal of discontinued component 28,000

Loss from operations of discontinued component (50,000)

Canton is subject to a 30% tax rate.

Required:

Prepare the December 31, 2016, income statement for Canton Corporation, starting with income from continuing operations before income taxes.

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Answers (1)

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Sage Gill · Answer 1

Canton Corporation

Income Statement for December 31, 2016

$

income from continuing operations before income taxes 110,000

Less: Income Tax 30% 38,500

Income from continuing operations 71,500

Gain on disposal of discontinued component 28,000

Tax on disposal of discontinued component (8,400)

Loss from operations of discontinued component (50,000)

Net loss from discontinue operations (30400)

Total Comprehensive Income 41,100