Selected account balances from the adjusted trial balance for Halogen Corp. as of its calendar year-end December 31, 2011, follow.

Required
Answer each of the following questions by providing supporting computations.
1. Assume that the company€™s income tax rate is 25% for all items. Identify the tax effects and after-tax amounts of the four items labeled pretax.
2. What is the amount of income from continuing operations before income taxes? What is the amount of income taxes expense? What is the amount of income from continuing operations?
3. What is the total amount of after-tax income (loss) associated with the discontinued segment?
4. What is the amount of income (loss) before the extraordinary items?
5. What is the amount of net income for theyear?

Debit Credit a. Other operating expenses. b. Depreciation expense-Buildings c. Loss from settlement of lawsuit . . . . . . . . 338,000 10,000 46,000 e. Loss on hurricane damage (pretax and extraordinary) 74.000 g Accumulated depreciation Equipment h. Interest revenue .A...w.. i. Net sales i Gain from settlement of lawsuit k Loss on sale of building L Loss from operating a discontinued segment (pretax) 230,000 410.000 30,000 2,650,000 78,000 34,000 130,000 42,000 58,000 n. Correction of overstatement of prior year's expense (pretax) o. Cost of goods sold. P Loss on sale of discontinued segments assets (pretax)..190,000 q. Depreciation expense Equipment.... 1,050,000 166,000