Hi, I would like some help on D. it states "The company recorded (included in the $1,210,000) a non-recurring gain of $125,000 on the condemnation of some of its property.", when I do the Income statement would that amount be added to the net income again or no? Thank you

XYZ Corporation has an average of 150,000 shares of common stock outstanding for the year ended 12/31/16. In 2016, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in the $1,210,000 are as follows:

a)In 2016, the company sold equipment for $40,000. The machine had originally cost $80,000 and had accumulated depreciation of $30,000. The gain or loss is considered non-recurring.

b)The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,000 before taxes. Assume the transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $90,000 before taxes; the loss from disposal of the subsidiary was $100,000 before taxes.

c)An internal audit discovered that amortization of intangible assets was understated by $35,000 (net of tax effect) in a prior period. In 2016, the amount was charged against retained earnings.

d)The company recorded (included in the $1,210,000) a non-recurring gain of $125,000 on the condemnation of some of its property.

Analyze the above information and prepare a partial income statement for the year ended 12/31/16. Start with income from continuing operations before income tax.

Assume an effective tax rate on all items, unless otherwise indicated, at a rate of 38%.

Compute and present on the face of the income statement earnings per share (EPS).

Note: For any items that require intra-period tax allocation, indicate whether the tax effect is a "tax" or a "tax benefit."