Oklahoma Company has income before irregular items of $290,000 for the year ended December 31, 2010. It also has the following items (before considering income taxes):
(1) An extraordinary fire loss of $50,000 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 Oklahoma Company’s income statement for 2010, beginning with “Income before irregular items.”