Ivanhoe Corp. has 149,080 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,217,100. Additional transactions not considered in the $1,217,100 are as follows.

1. In 2017, Ivanhoe Corp. sold equipment for $35,600. The machine had originally cost $80,500 and had accumulated depreciation of $34,300. The gain or loss is considered non-recurring.

2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $191,700 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $93,300 before taxes; the loss from disposal of the subsidiary was $104,100 before taxes.

3. An internal audit discovered that amortization of intangible assets was understated by $35,300 (net of tax) in a prior period. The amount was charged against retained earnings.

4. The company had a non-recurring gain of $128,000 on the condemnation of some of its property (included in the $1,217,100).

Answer rating: 100% (QA)

Prepare the income statement Note Calculate of restated income from continuing operations before inc... View the full answer