Terwilliger Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2014. The 2014 operating results for the company were as follows.
Operating revenues ........ $12,850,000
Operating expenses ........ 8,700,000
Operating income ........... $ 4,150,000
Analysis discloses that these data include the operating results of the hotel chain, which were operating revenues $1,500,000 and operating expenses $2,400,000. The hotels were sold at a gain of $200,000 before taxes. This gain is not included in the operating results.
During the year, Terwilliger suffered an extraordinary loss of $600,000 before taxes, which is not included in the operating results. In 2014, the company had other revenues and gains of $100,000, which are not included in the operating results. The corporation is in the 30% income tax bracket.

Prepare a condensed income statement.

  • CreatedJanuary 30, 2014
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