Selected account balances from the adjusted trial balance for Harbor Corp. as of its calendar year- end December 31, 2013, 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 $ 400,000 20,000 2.640,000 a. Accumulated depreciation Buildings... e. Loss on hurricane damage (pretax and extraordinary) .. 64.000 220,000 h. Depreciation expense- Equipment . . .. .100,000 j. Gain from settlement of lawsuit k. Loss on sale of equipment.. . . 24.000 I. Loss from operating a discontinued segment (pretax) ..20,000 68,000 n. Correction of overstatement of prior year's expense (pretax) o. Cost of goods sold .. 1,040,000 48,000 ntinued segment's assets (pretax) 132.000