Tulsa Company has income before irregular items of $310,000 for the year ended
December 31, 2012. It also has the following items (before considering income taxes):
(1) An extraordinary fire loss of $60,000 and
(2) A gain of $30,000 from the disposal of a division. Assume all items are subject to income taxes at a 30% tax rate.
Instructions
Prepare Tulsa Company’s income statement for 2012, beginning with “Income before irregular items.”