Question

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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