Intermediate accounting

P4.8 (LO2, 3, 4) Groupwork (Income Statement) Wade NV has 150,000 ordinary shares of outstanding. In 2019, the company reports income before income tax of E1,210,000. Additional transactions not considered in the E1,210,000 are as follows. 1. In 2019, Wade NV sold equipment for E40,000. The machine had originally cost E80,000 and had accumulated depreciation of E30,000 2. The company discontinued operations of one of its subsidiaries during the current year at a loss of (190,000 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was E90,000 before taxes; the loss from disposal of the subsidiary was (100,000 before taxes. 3. An internal audit discovered that amortization of intangible assets was understated by E35,000 (net of tax) in a prior period. The amount was charged against retained earnings. 4. The company had a gain of (125,000 on the condemnation of much of its property. Instructions Analyze the above information and prepare an income statement for the year 2019 starting with income before income tax. Compute earnings per share as it should be freebookslides.com shown on the face of the income statement. (Assume a total effective tax rate of 20% all items )