Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31, 2018, follow.

Required

Answer each of the following questions by providing supporting computations.

1. Assume that the company?s income tax rate is 30% for all items. Identify the tax effects and after-tax amounts of the three items labeled pretax.

2. Compute the amount of income from continuing operations before income taxes. What is the amount of the income tax expense? What is the amount of income from continuing operations?

3. What is the total amount of after-tax income (loss) associated with the discontinued segment?

4. What is the amount of net income for the year?

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Debit Credit $ 14,000 a. Interest reverue $ 34,000 b. Depreciation expense-Equipment. c. Loss on sale of equipment. 25,850 d. Accounts payable. 44,000 e. Other operating experses. f. Accumulated depreciation-Equipment. g. Gain from setlement of lawsuit. h. Accumulatod dopraciation-Buildings i. Loss fromoperating a discontinued segment (pretax). j. Gain on insurancerecovery of tomado damage k. Net sales....... 106,400 71,600 44,000 174,500 18,250 20,000 998,000 I. Depreciation expense-Buldings m. Correction of overstatement of prior year's sales (pretax). 52,000 16,000 n. Gain on salo of discontinucd sogment's assots (protax) 34,000 o. Loss fromsettlement of lawsuit. p. Income tax expense. q. Costof goods sold 23.250 ? 482,500