Question: For its fiscal year ending October 31 2017 Haas Corporation

For its fiscal year ending October 31, 2017, Haas Corporation reports the following partial data shown below.
Income before income taxes ............ $540,000
Income tax expense (20% 3 $420,000) ........ 84,000
Income from continuing operations .......... 456,000
Loss on discontinued operations ........... 120,000
Net income .................. $336,000
The loss on discontinued operations was comprised of a $50,000 loss from operations and a $70,000 loss from disposal. The income tax rate is 20% on all items.

Instructions
(a) Prepare a correct statement of comprehensive income beginning with income before income taxes.
(b) Explain in memo form why the income statement data are misleading.


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  • CreatedMarch 02, 2015
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