Excercise $-$ Unit $5$

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.

$\backslash$table$[[$Cost of goods sold,$$2,600,000$