Nephi Corporation reported the following income items before tax for the year 2013: Income from continuing operations

Question:

Nephi Corporation reported the following income items before tax for the year 2013:

Income from continuing operations before income taxes . . . . . . . . . . . . . . . . . . . . . . . . $260,000

Loss from operations of a discontinued business component . . .. . . . . . . .. . . . . . . . . . . . . 70,000

Gain from disposal of a business component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000

Extraordinary gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000

The income tax rate is 35% on all items. Prepare the portion of the income statement beginning with Income from continuing operations before income taxes for the year ended December 31, 2013, after applying proper intra-period income tax allocation procedures?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...