Question: Memorax Company earned before tax income of 790 000 for its 201
Memorax Company earned before-tax income of $790,000 for its 2011 fiscal year. During the year, the company experienced a $520,000 loss from earthquake damage that it considered to be an extraordinary item. This loss is not included in the $790,000 before-tax income figure. The company's income tax rate is 40%. Prepare the lower portion of the 2011 income statement beginning with $790,000.
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