NASH CORP.

Income Statement $($Partial$)$

For the Year Ended December $31,2025$

$

Income Tax

Income from Continuing Operations

Discontinued Operations

Loss from Disposal of Subsidiary $$

Loss from Operations of Discontinued Subsidiary $gra{d}^{}$

Net Income $/($Loss$)$

$

$$

$

Discontinued Operations

Loss from Disposal of Subsidiary

Loss from Operations of Discontinued Subsidiary hat$(grad)$

Net Income $/($Loss$)$

Net Income $/($Loss$)$

Earnings per Share

Income from Continuing Operations

Discontinued Operations

Your answer is partially correct.

Nash Corp. has $150,540$ shares of common stock outstanding. In $2025,$ the company reports income from continuing operations before income tax of $$1,232,400.$ Additional transactions not considered in the $$1,232,400$ are as follows.

In $2025,$ Nash Corp. sold equipment for $$36,400.$ The machine had originally cost $$80,700$ and had accumulated depreciation of $$32,400.$ The gain or loss is considered non$-$recurring.

The company discontinued operations of one of its subsidiaries during the current year at a loss of $$190,400$ before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $$91,400$ before taxes; the loss from disposal of the subsidiary was $$99,000$ before taxes.

An internal audit discovered that amortization of intangible assets was understated by $$37,700($net of tax$)$ in a prior period. The amount was charged against retained earnings.

The company recorded a non$-$recurring gain of $$128,800$ on the condemnation of some of its property $($included in the $$1,232,400.$

Analyze the above information and prepare an income statement for the year $2025,$ starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. $($Assume a total effective tax rate of $19\%$ on all items, unless otherwise indicated.$)($Round earnings per share to $2$ decimal places, e$.$g$.1\mathrm{.}47.)$

Income before Income Tax

$

Income Tax

Income from Continuing Operations

Discontinued Operations

Loss from Disposal of Subs $($mory

$

Loss from Operations of Discontinued Subsidiary hat$(grad)$

Net Income $/($Loss$)$

Net Income $/($Loss$)$

$

$

Income from Continuing Operations $$

Net Income $/($Loss$)$

$

Nash Corp. has $150,540$ shares of common stock outstanding. In $2025,$ the company reports income from continuing operations before income tax of $$1,232,400.$ Additional transactions not considered in the $$1,232,400$ are as follows.

In $2025,$ Nash Corp. sold equipment for $$36,400.$ The machine had originally cost $$80,700$ and had accumulated depreciation of $$32,400.$ The gain or loss is considered non$-$recurring.

The company discontinued operations of one of its subsidiaries during the current year at a loss of $$190,400$ before taxes. Assume that this transaction meets the citeria for discontinued operations. The loss from operations of the discontinued subsidiary was $$91,400$ before taxes; the loss from disposal of the subsidiary was $$99,000$ before taxes.

An internal audit discovered that amortization of intangible assets was understated by $$37,700($net of tax$)$ in a prior period. The amount was charged against retained earnings.

The company recorded a non$-$recurring gain of $$128,800$ on the condemnation of some of its property $($included in the $$1,232,400.$

Analyze the above information and prepare an income statement for the year $2025,$ starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. $($Assume a total effective tax rate of $19\%$ on all items, unless otherwise indicated.$)($Round earnings per share to $2$ decimal places, e$.$g$.1\mathrm{.}47.)$