During the current year, Newtech Corporation sold a segment of its business at a loss of $230,000. Until it was sold, the segment had a current period operating loss of $200,000. Also, the company had an extraordinary gain of $90,000 during the year as the result of an expropriation settlement received from a foreign government. The company has $800,000 income from continuing operations for the current year. Prepare the lower part of the income statement, beginning with the $800,000 income from continuing operations. Follow tax allocation procedures, assuming that all changes in income are subject to a 40 percent income tax rate. Disregard earnings per share disclosures.

Do not use negative signs with any of your answers.

Income from Continuing Operations		Answer
Discontinued Operations
Loss from operations of discontinued segment	Answer
Loss on disposal of discontinued segment	Answer	Answer
Income before Extraodinary Item		Answer
Extraordinary Item
Gain on expropriation settlement		Answer
Net Income		Answer

Answer rating: 100% (QA)

Income from Continuing Operations 800000 40 320000 800000 320000 480000 ... View the full answer