Use the following information to compute income from continuing operations and net income. Assume that the income tax rate on all items is 40%.
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,000
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,100
Loss from an unusual but frequent event . . . . . . . . . . . . . (1,000)
Selling and administrative expense . . . . . . . . . . . . . . . . . 1,750
Loss from an unusual and infrequent event . . . . . . . . . . . (400)
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Gain from a normal but infrequent event . . . . . . . . . . . . . 1,250
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700