Excercise Unit $51.$

In its proposed $2012$ income statement, AIR Corporation reports income before income taxes $$400,000,$ extraordinary loss due to earthquake $$100,000,$ income taxes $$120,000($not including irregular items$),$ loss on operation of discontinued flower division $$50,000,$ and loss on disposal of discontinued flower division $$90,000.$ The income tax rate is $30\%.$

Prepare a correct income statement, beginning with Income before income taxes.:R$=$

$2.$The events and transactions of Dever Corporation for the year ending December $31,2012,$ resulted in the following data.

Cost of goods sold$ $2,600,000$

Net sales $4,400,000$

Other expenses and losses $9,600$

Other revenues and gains $5,600$

Selling and administrative expenses $1,100,000$Income from operation of plastics division $70,000$Gain from disposal of plastics division $500,000$

Lost from tornado disaster $($extraordinary loss$)600,000$

Analysis reveals that:

$1.$All items are before the applicable income tax rate of $30\%$

$2.$The plastics division was sold on July $01.$

$3.$All operating data for the plastics division have been segregated.Instructions:

Prepare an income statement for the year: