Question: Jordan Wing Inc a sporting goods retailer began operations on

Jordan Wing, Inc., a sporting goods retailer, began operations on January 2, 2012. It reported net income of $3,091,660 during 2014. Additional information about transactions occurring in 2014 follows:
1. Jordan Wing realized $175,000 from settling a trademark infringement lawsuit.
2. The corporation disposed of its catalog sales component at a pre-tax loss of $345,000.
This transaction meets the criteria for discontinued operations.
3. Sale of 10,000 shares of Xerox stock held as a short-term investment resulted in a gain of $23,450.
4. The firm changed its method of depreciating fixed assets from the straight-line method to the declining balance method, which was used to determine income in 2014.
5. Jordan Wing suffered a $23,000 impairment loss in 2013, which it failed to record.
6. The firm experienced an (extraordinary) uninsured tornado pre-tax loss in the amount of $83,500.

Prepare an income statement for the year ended December 31, 2014, starting with income from continuing operations before taxes; include proper earnings per share disclosures. Jordan Wing had 150,000 common shares outstanding for the year. Assume a 35% tax rate on all items.

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  • CreatedSeptember 10, 2014
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